MCT: Lock Volume Up 28% in February

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Mortgage Capital Trading, San Diego, released its latest MCT Lock Volume Indices, finding that lock volume increased 28% month-over-month.

MCT noted that the changing interest rate environment has strongly affected lock volume.

“The primary driver behind the increase in lock volume was the brief move into the high-5% range, which marked the first time in several years borrowers had seen mortgage rates with a ‘5’ handle,” said Andrew Rhodes, senior director and head of trading at MCT. 

“Mortgage demand remains highly rate sensitive, and even small improvements in rates can quickly bring borrowers back into the market,” he continued. “While rates have since moved back into the low-6% range amid geopolitical uncertainty and inflation concerns, we’re also seeing borrowers gradually adjust to the current rate environment as expectations normalize.”

The purchase lock volume index was up 30.61% month-over-month. For rate/term refinance it was up 30.54% and for cash-out refinance it was up 12.68%.

Year-over-year, the overall index value was up 42.59%. The purchase lock volume index was up 6.23%. For rate/term refinance it was up a notable 438.67% and for cash-out refinance it was up 50.5%.