MCT: Almost 2% Lock Volume Increase in April

(Image courtesy of MCT; Breakout image courtesy of Henk Mohabier/

Mortgage Capital Trading, San Diego, released its MCT May Indices Report, covering volumes from April. It found a 1.87% increase in mortgage lock volume compared with March.

The purchase locks index was up 2.7%, but rate/term refinances was down 10.24% and cash-out refinances was down 3.79%.

Year-over-year, the total index was up 13.52%, with purchase locks up 13.51%, rate/term refinances up 37.22% and cash-out refinances up 3.9%.

MCT points to a potential shift in public perception as affecting the lock volume, as potential homebuyers have accepted they’ll need to take on a higher mortgage rate than the past few years.

“While the outlook for the summer remains positive, it’s closely tied to forthcoming economic reports,” noted Andrew Rhodes, Senior Director and Head of Trading at MCT. “With April nonfarm payroll coming in lower than expected the Federal Reserve is waiting to see if this will become a trend or is just an outlier in terms of strength in jobs. The May CPI report, coming out on [May 15], will be particularly pivotal in determining the market’s expectations in rate cuts sooner or later with some already pricing in cuts in September.”

The Rate Lock Indices report provides a snapshot of rate lock volume activity in the residential mortgage industry across a broad range of lenders.