June Rate Lock Volume Up 31%: MCT

Mortgage News July 19, 2023

Based on the latest report from Mortgage Capital Trading, the volume of mortgage rates experienced a 31% surge in June. This information is based on the actual number of locked loans and comes after a 15% decline in total lock production in May. On average, mortgage rates in June hovered around the 6.7% mark.

Andrew Rhodes, the Senior Director and Head of Trading at MCT, mentioned that the slowdown in originations towards the end of May suggests a revival in originations during the summer months. He emphasized that factors such as rates, housing supply, and affordability will remain the primary drivers behind the limited number of new originations.

MCT has projected additional rate increases that could impede origination volume, which they describe as being at a “new normal” level. The June data from MCT also indicates a year-over-year decrease of almost 8% in total lock volume. Despite starting the year with low numbers in purchase, rate/term refinance, and cash-out refinance, each production type is gradually showing a modest upward trend, as reported by MCT.

Rhodes emphasized that economic reports will continue to play a significant role in influencing the decision-making process of the Federal Reserve. While the labor market is gradually stabilizing, the current conditions are still deemed excessively strong from the perspective of the Fed’s preferences.

The Bureau of Labor Statistics released data on Friday, revealing another month of relatively robust job gains in June. Total nonfarm payroll employment increased by 209,000 jobs during this period, compared to the higher figure of 339,000 jobs added in May.

The Bureau of Labor Statistics released data on Friday, revealing another month of relatively robust job gains in June. Total nonfarm payroll employment increased by 209,000 jobs during this period, compared to the higher figure of 339,000 jobs added in May.

Earlier this month, Fannie Mae released a report indicating that the latest housing market data indicates potential borrowers have accepted the presence of high interest rates

MCT’s Rate Lock Indices provide a current overview of rate lock volume activity within the residential mortgage industry. These indices categorize lock types (purchase, rate/term refinance, and cash-out refinance) across a wide range of lenders on a national scale, encompassing various sizes, offered products/services, and business models.

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