Mortgage locks increase following recent rate dip

A jump in refinance activity lifted mortgage lock volumes last month, but purchase numbers may hold more promise for lenders.

Total lock volume in June came in 2.11% higher month over month, according to the latest data from Mortgage Capital Trading. Rate-and-term refinance activity provided much of the momentum with a leap of 9.89%, as borrowers took advantage of a pullback in interest rates late last month. Cash-out transactions also increased 3.14% month over month. 

Growth in refi volume exceeded the pace of purchases, which grew 2.11% compared to May’s numbers. 

Despite the slower pace of purchase locks, steady numbers in the face of recent economic uncertainty may prove to be a better indicator of current housing sentiment, said MCT’s senior director and head of trading Andrew…