Sure. But it will depend on a program. If you are a big name program and people are lining up to try to come to your program, then it probably matters less to you. But as a small town community program, why in the world would you interview someone from NYC who went to school in NYC and who did 3 rotations all in NYC? You'd have to assume that person fully intends on staying in that city.
Interview spots are limited for programs. You can't interview everyone. You have to try and maximize interviewing the best people, but also the people who actually intend on ranking your program high enough that they could actually match there. Its a guessing game for sure, but as a program, you have to find candidates that fit a profile for your location and program type. If someone never applied to rotate at your place, never rotated anywhere near your place, never rotated in a geographic place similar to yours, and has personal interests that don't align with what your area offers, it's a waste of time as a program to interview that person. As a program you can only interview 10% or so of the people that applied. You have to try to figure out which people are BOTH the best qualified to interview while ALSO being the most likely to take the interview / not cancel, and actually be interested in your program.
It's a hit or miss process. Obviously everyone you choose to interview you isn't ranking you #1, or even #1-3 for that matter. It takes a good bit of profiling based on peoples hometowns, med school location, personal interests, rotation sites, etc combined with looking at their data and SLOEs to get a sense of whether they will be a good fit for your program. I spend an extraordinary amount of time looking at apps trying to find the right people, and I can tell you, I'm sure I miss out on a lot of good candidates with genuine interest and still grant interviews to a lot of people that aren't that interested in the end. But I think it's still better than just saying "I'll interview the 10% with the best sloes / boards". Ultimately you want your match class to be happy they matched there. You want them to be happy for the 3 years they are there. That's important for having a good cohesive team that all gets along.
So just like applicants applying and knowing their competitive window, I think programs have to know the types of candidates the excel at in matching.