New mortgage activity was stronger this week thanks to a renewed interest in refinances as rates fell. But government-insured business tumbled, and purchase activity was slower.
The average number of pricing inquiries pulled by loan originators was 4 percent higher than last week, leaving the U.S. Mortgage Market Index from Mortech Inc. and Mortgage Daily for the week ended April 13 at 223.
The index was 215 a week earlier and 214 a year earlier.
A 10 percent increase in refinances from the week ended April 6 fueled the improvement this week. Refinance inquiries were up by more than two-thirds compared to the week ended April 15, 2011.
Nearly two-thirds of this week’s business was refinance, growing from a 61 percent refinance share last week. The latest share reflected a 13 percent cashout share and a 52 percent rate-term share.
Inquiries for conventional mortgages were up 7 percent for the week and 13 percent more than a year ago.
Jumbo mortgage inquiries rose 5 percent as jumbo share moved nominally wider to 8.38 percent.
Borrowers inquiring about adjustable-rate mortgages accounted for 4.34 percent of overall activity this week. ARMÂ share was 4.36 percent last week and 9.55 percent a year previous. ARM inquiries increased 3 percent from seven days prior.
Purchase financing inquiries dropped 7 percent for the week and were off more than 38 percent from this week last year.
Even worse performing were inquiries for loans insured by the Federal Housing Administration. FHAÂ business was down 15 percent from last week and was more than a third worse than the week ended April 15, 2011.
Conforming 30-year fixed rates averaged 4.060 percent in this week’s report, falling from 4.195 percent in the prior report. The 30 year was 5.073 percent a year ago.
Inquiries for 15-year loans were discounted around 77 BPS off of 30-year rates, about the same spread as last week.
Jumbo mortgages were priced around 56 BPS more than conforming loans, a little better than the 57-basis-point spread in the previous report and 59 BPS in the report for a year earlier.
Mortgage rates have the potential to be around 3 BPS better in the next Mortgage Market Index report based on this week’s Treasury market activity. The yield on the 10-year Treasury note averaged 2.05 percent during the week of the latest report. The 10-year yield closed today at 2.02 percent.
