Fewer prospective mortgage borrowers pulled the trigger in June, according to a new report from Mortgage Capital Trading.
Mortgage rate locks decreased 7.84% in June compared to the previous month.
This drop follows a brief uptick in volume at the beginning of the traditional buying season, suggesting a continuing stalemate between limited housing supply and higher interest rates (they were 7.11% on Friday), MCT said this week.
While purchase locks fell 8.99%, refinances increased by 11.56%. Overall, on a year-over-year basis, volumes in June increased 6.11%.
In a statement, MCT’s Andrew Rhodes, the company’s head of trading, said June’s economic reports are expected to play a critical role in shaping the Federal Reserve‘s next moves.
“If the upcoming nonfarm payroll report and Consumer Price Index (CPI) continue to align with predictions, and these economic indicators continue to show progress, we could see one or two rate cuts by the end of the year,” he said.
On Friday, the jobs report showed 206,000 new jobs were created, above the expected figure of 189,000 but a meaningful decline from prior months.
Traders on Friday were pricing in two rate cuts in 2024, starting in September.
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