It was a positive week for originators who handle purchase transactions — which jumped and overcame a retreat in refinances to push overall activity up.
At 206, the U.S. Mortgage Market Index from Mortech Inc. and MortgageDaily.com for the week ended April 1 was better than 195 a week earlier but worse than the same week last year, when the index was 237.
The 6 percent week-over-week improvement in overall business was driven by a 15 percent increase in purchase inquiries. Purchases were off 19 percent from last year, though that largely reflects elevated activity that resulted from the home tax credit which expired on April 30, 2010 (though the tax credit was subsequently extended).
But refinance activity was down 5 percent from last week and 2 percent lower than the week ended March 31, 2010. Refinance share dropped to 42 percent from last week’s 47 percent. However, refinance share was higher than 37 percent a year ago.
Friday’s refinance share reflected a rate-term share of 29 percent and a cashout share of 12 percent.
The proportion of borrowers who were shopping for an adjustable-rate mortgage fell to 9.48 percent from 9.53 percent. Still, the number of ARM prospects was up 5 percent from the previous week.
The push for purchases came even as the conforming 30-year fixed rate edged up to 5.005 percent from last week’s 4.919 percent. The 30-year was lower at 4.875 percent at the same point in 2010.
The spread between the conforming 30-year and the jumbo 30-year deteriorated this week to 64 basis points from 61 BPS a week ago.
Meanwhile, the spread between the 30-year and the 15-year narrowed to 78 BPS from 80 BPS.
