MCT: December Sees Monthly Decline in Mortgage Lock Activity

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Mortgage Capital Trading, San Diego, released its latest Lock Volume Indices, finding that total lock volume fell 18.74% month-over-month in December.

Borrowers pulled back amid lingering uncertainty after the recent government shutdown and a continued challenging rate environment, MCT noted.

Purchase lock volume was down 19.48% month-over-month. Rate-and-term refinance lock volume was down 19.12% and cash-out refinance was down 13.68%.

“Lock volume is down more than expected,” said Andrew Rhodes, head of trading at MCT. “When you combine typical winter seasonality with the spillover effects of the longest government shutdown in history, it makes sense that people became more conservative about making big financial decisions, including buying a home.”

“Back in October, I was feeling more optimistic about where rates were headed,” Rhodes continued. “Now it seems like mortgage rates have settled into the low sixes, and it doesn’t feel like we’re going to get into the fives, which is really where you’d see production start to pick up.”

However, compared to December 2024, volume was significantly higher. Year-over-year, the overall index values were up 29.49%. Purchase lock volume was up 7.04%, rate-and-term refinance lock volume was up 257.18% and cash-out refinance was up 45.9%.