MCT®, the leader in capital markets software and services supporting more lenders with hedging and pipeline management solutions than any other single provider, is pleased to present the MCTlive! Lock Volume Indices for September 2022. MCT Data represents a balanced cross section of several hundred lenders among retail, correspondent, wholesale, and consumer direct channels.
SAN DIEGO, Calif. /Mortgage and Finance News/ — MCT®, the leader in capital markets software and services supporting more lenders with hedging and pipeline management solutions than any other single provider, is pleased to present the MCTlive! Lock Volume Indices for September 2022. MCT Data represents a balanced cross section of several hundred lenders among retail, correspondent, wholesale, and consumer direct channels.
A broad-based view of the entire market provides a more accurate picture of mortgage originations versus indices that are influenced by mega lenders. The September MCTlive! Lock Volume Indices is broken out by transaction type: purchase, rate/term refinance, and cash out refinance.
September MCTlive! Lock Volume Indices show that year-over-year total lock volume (-48.5 percent) continues to drop, as expected, when compared to the white-hot summer of 2021. However, both the month-over-month rate/term refinance lock figure (up 33.0 percent) and purchase index (up 6.3 percent) increased in September. Total mortgage rate locks by dollar volume decreased 5.4 percent month-over-month in September. Cash out refinances are down 10.7 percent month-over-month and from one year ago volume is down 80.6 percent, while rate/term refinance volume has dropped 92.9 percent from 2021. Please note that loan sizes were up 8.3 percent over the past year, with the average loan amount increasing from $292k to $317k.
It is important to note that MCT’s rate lock activity indices are based on actual dollar volume of locked loans, not number of applications. Especially in a tight purchase market, MCT believes its methodology (using actual loans locked vs. applications) is a more reliable metric. There is a higher likelihood of having multiple applications per funded loan, and prequals do not convert at as high of a rate in the current market as has historically been the case – especially when applications are counted at the early stage of entering a property address.
INDEX VALUES TO END SEPTEMBER AS A PERCENTAGE BENCHMARKED TO THE START OF THE MONTH
Category | Month-Over-Month Index Value Change
Total: +5.44%
Purchase: +6.31%
Rate/Term Refinance: +32.98%
Cash Out Refinance: -10.66%
INDEX VALUE CHANGE YEAR-OVER-YEAR
Category | Year-Over-Year Index Value Change
Total: -48.48%
Purchase: -20.5%
Rate/Term Refinance: -92.89%
Cash Out Refinance: -80.56%
MCT will be publishing the MCTlive! Mortgage Lock Volume Indices monthly, intending the data to serve as an enduring informational tool for industry participants, analysts, and watchers.
About MCT:
Founded in 2001, Mortgage Capital Trading, Inc. (MCT)® has grown from a boutique mortgage pipeline hedging firm into the industry’s leading provider of fully integrated capital markets services and technology. MCT’s offerings include mortgage pipeline hedging, best execution loan sales, business intelligence and analytics, outsourced lock desk solutions, MSR valuation, hedging, and bulk sales, and the world’s first, truly open marketplace for loan sales.
MCT supports independent mortgage bankers, depositories, credit unions, warehouse lenders, and correspondent investors of all sizes within its award-winning digital platform, MCTlive!®. Headquartered in sunny San Diego, MCT also has offices in Healdsburg, CA, Philadelphia, PA and Texas.
For more information, visit https://mct-trading.com/.
Learn More: https://mct-trading.com/
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