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Rates expected to remain high through the end of the year
Mortgage Capital Trading (MCT) has released its October Indices Report, denoting a slump of 13.29% in mortgage lock volume compared to the previous month.
In a news release, the advisory firm said the data is mainly attributed to elevated mortgage rates over the last month, with the shortage in supply and unattractive house prices being secondary reasons.
“We are hopeful that we will get some better sentiment from the Fed in either its November or December meeting which would allow for some relief for rates,” said Andrew Rhodes, senior director and head of trading at MCT.
The firm noted the Fed will most likely be considering CPI and non-farm payroll as it makes a decision for the rest of 2023 and in the lead up to Q1 of 2024. Rhodes pointed out though that rates are largely perceived to remain at their high levels for longer.
“As long as those numbers continue to stay strong or in line with the consensus, I believe the rates are going to stay where they are. If we see a strong shift in either direction for CPI or non-farm payroll, that could mean we will either see an increase in rates or we will get more verbiage on pausing and it being close to terminal.” said Rhodes.
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