MCT Finds 8% Mortgage Lock Volume Decrease

(Illustration courtesy of MCT)

Mortgage Capital Trading, San Diego, found a decrease of 7.84% in mortgage lock volume in June compared to May.

This decline follows a brief uptick in volume at the beginning of the buying season, suggesting a continuing stalemate between limited housing supply and higher interest rates, MCT’s July Indices Report said.

“The limited supply of available homes coupled with mortgage rates hovering around 7% has contributed to the observed decline in activity for June,” the report said. “As the market navigates these constraints, the mortgage industry anticipates a sideways trend over the next couple of months. Market supply likely peaked at the start of summer, and with rates remaining steady, significant changes in volume are not expected in the near term.”

MCT Senior Director and Head of Trading Andrew Rhodes noted that June’s economic reports will play a critical role in shaping the Federal Reserve’s actions for the remainder of the year. “If the upcoming Nonfarm Payroll Report and Consumer Price Index continue to align with predictions, and these economic indicators continue to show progress, we could see one or two rate cuts by the end of the year,” he said.