SAN DIEGO, CA – July 3, 2024 – Mortgage Capital Trading, Inc. (MCT®), the de facto leader in innovative mortgage capital markets technology, today announced that mortgage locked volume decreased 7.84% compared to the previous month. The decline comes after a temporary increase at the start of the homebuying season, signaling a continued stalemate between limited housing supply and rising interest rates.
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The decline in activity in June was driven in part by limited home supply and mortgage rates hovering around 7%. As the market navigates these constraints, the mortgage industry expects the industry to remain stable over the next few months. Market supply appears to have peaked at the start of the summer and interest rates have remained stable, so we do not expect significant changes in transaction volumes in the near term.
The June economic report is likely to play a key role in shaping the Fed's actions for the remainder of the year. Upcoming data will be closely scrutinized as the Fed continues to tackle inflation. Andrew Rose, Senior Director and Head of Trading at MCT, emphasized the importance of these indicators, saying, “If the upcoming Nonfarm Payroll report and Consumer Price Index (CPI) continue to align with expectations and these economic indicators continue to show progress, we could see one or two rate cuts by the end of the year.”