MCT reports double-digit volume increase as buyers remain active
Mortgage rate lock volume surged in February amid a backdrop of increasing interest rates and economic uncertainty, according to a recent report by Mortgage Capital Trading (MCT).
Purchase activity led the way, with a 22% month-over-month increase. Rate/term and cash-out refinances also saw gains, rising 3.97% and 16.98%, respectively.
Compared to February 2023, overall lock volume was up 4.97%, with increases in purchase (3.94%), rate/term refinances (37.70%), and cash-out refinances (7.26%).
This increase comes amid rising interest rates, a strong jobs market, and higher-than-expected inflation. Despite these headwinds, the surge in lock volume suggests continued buyer interest, according to the report.
The Federal Reserve’s response to the latest economic data will be a major factor in determining future mortgage market activity. Continued rate increases could dampen demand, while stabilization or decreases could support further growth.
“The upcoming non-farm payroll and CPI reports will have a significant impact on the decision for the upcoming Fed meeting in terms of forward guidance,” said Andrew Rhodes, senior director and head of trading at MCT. “If we continue to see higher than anticipated job and inflation reports, we could see market expectations start to push rate cuts out to Q3 or later, which could act to depress mortgage volume.”
Stay updated with the freshest mortgage news. Get exclusive interviews, breaking news, and industry events in your inbox, and always be the first to know by subscribing to our FREE daily newsletter.
