MCT Reports 3% Increase in September Mortgage Lock Volume
(Image courtesy of MCT; Breakout image courtesy of SevenStorm JUHASZIMRUS/pexels.com)
Mortgage Capital Trading, San Diego, reported a 3.17% increase in mortgage lock volume in September compared with August.
That increase was pushed up by a surge in refinances, specifically of the rate/term variety.
The month-over-month change for the September index values on purchase locks was a 4.61% decrease. But, the rate/term refinances index saw a 63.59% increase and the cash-out refinance index saw an 8.3% increase.
Looking at year-over-year numbers, the total index was up 35.15% compared with September 2023.
The purchase index was up 15.11% year-over-year. But, the rate/term refinance index was up 651.28% year-over-year and the cash-out refinance index was up 60.54% year-over-year.
“This data signals a potential shift in strategy for loan officers, who are increasingly targeting borrowers looking to refinance after securing mortgages at higher peak rates,” said Andrew Rhodes, Senior Director and Head of Trading at MCT.
“However, for a more significant rise in refinance activity, mortgage rates will need to drop much further. Currently, many borrowers remain locked into historically low rates, making the potential for increased refinance volume contingent on further rate reductions outside of market expectations,” he continued.