MCT: Rate/Term Refinances Surge in September

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Mortgage Capital Trading, San Diego, released its latest Lock Volume Indices, revealing that rate/term refinances rose by 183.54% on a monthly basis in September.

Borrowers likely took advantage of the drop in interest rates preceding the September Federal Reserve meeting, the report concluded.

“When rates drop, people see the opportunity to lock in a better rate and go after it,” said Andrew Rhodes, Head of Trading at MCT. “We saw this same pattern in September of last year during a significant rate decline, and it’s playing out again.”

Overall, total lock volume was up 14.03% month-over-month for the period from Sept. 1-Sept. 30.

Purchase locks were narrowly down by 2.13%, but cash-out refinances rose 7.82%.

On an annual basis, the total year-over-year index was up 13.42%. Purchase lock volume rose 5.97% year-over-year, rate/term refinance lock volume was up 44.8% and the cash-out refinance lock volume was up 21%.