MCT Reports a 3% Increase in Mortgage Lock Volume Backed by Increasing Refinance Activity

SAN DIEGO, CA – September 4, 2024 – Mortgage Capital Trading, Inc. (MCT®), the de facto leader in innovative mortgage capital markets technology, announced today a 3.33% increase in mortgage lock volume compared to the previous month. Despite a larger increase in rate/term volume, total mortgage volume remains relatively flat.

A recent quarter-point drop in conventional 30-year and government 30-year mortgage rates has triggered an increase of 103.19% in refinance activity compared to the previous month. This surge has helped stabilize overall production levels as total volume remains low, especially when  compared to 2020 and 2021. Notably, the year-over-year comparison shows a moderate increase of about 21% in total volume, also driven by a dramatic rise in refinances over the previous year.

Industry experts suggest that many lenders may be pricing in the potential rate cuts expected during the upcoming Federal Reserve meeting.

Andrew Rhodes, Senior Director and Head of Trading at MCT, offered insights into the current market landscape: “We could see additional short-term market volatility as the Fed considers a 25 or 50 basis point rate cut. Friday’s Nonfarm Payroll Report will provide further clarity on that decision.”

To access the comprehensive insights provided by MCT’s Lock Volume Indices, interested parties are encouraged to download the full report.

MCT’s Lock Volume Indices present a snapshot of rate lock volume activity in the residential mortgage industry broken out by lock type (purchase, rate/term refinance, and cash out refinance) across a broad diversity of lenders (e.g., sizes, products/services offered, business models) from MCT’s national footprint.