MCT: Lock Volume Trends Mixed

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Mortgage Capital Trading, San Diego, released its September Lock Volume Indices report, highlighting some volatility in the market.

The report covers Aug. 1-Aug. 31, and tracks lock volumes across a broad diversity of lenders.

The overall index was down by 0.78% month-over-month.

The purchase lock volume index was down 4.04%. But, the rate/term refinance lock volume index was up 32.56% from the previous month, and the cash-out refinance marker was up by 6.35%.

“It’s amazing how volatile the rate/term segment can be,” said Andrew Rhodes, head of trading at MCT. “It shows just how much volume we’re doing in it. A little bit moves the bucket significantly.”

Year-over-year, the total index was up by 5.32%.

The purchase lock volume index was up by 5.35%. Rate/term refinance lock volume index was down by 14.52% and cash-out refinance was up by 26.73%.

Rhodes also noted that the mortgage-to-treasury spread has lowered, potentially creating market volatility after next week’s Federal Reserve meeting, depending on the outcome.

“When there’s potential for volatility, the key is to stick to basics,” he explained. “Stay conservative in your interest rate exposure position, follow your policies and procedures, and maintain disciplined risk management.”