| Mortgage Activity Continues DeclineMortgage Market Index 311 for week ended Aug. 26
Aug. 26, 2011 By MortgageDaily.com staff |
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| It was the second consecutive week that new mortgage activity was lower. Refinance business tumbled nearly a quarter as rates were higher.
Mortgage inquiries for the week ended Aug. 26 were down 19 percent from last Friday. It was the second week in a row that business declined. The findings were outlined in the U.S. Mortgage Market Index report from Mortech Inc. and Mortgage Daily. Compared to the same week in 2010, pricing inquiries were off 12 percent. But at 311 this week, the Mortgage Market Index still sits well above the 2011 low of 162 reached last month. Leading the week-over-week dropoff were refinances — which tumbled 23 percent. Compared to a year earlier, refinances were off just 7 percent. Refinance share in today’s report was 68 percent, down from 71 percent seven days prior. The share stood at 64 percent a year prior. This week’s refinance activity reflected a rate-term share of 54 percent and a cashout share of 68 percent. On the purchase side, 9 percent fewer inquiries were made this week than last week. Purchase activity has plummeted 22 percent over the past 12 months. Conventional inquiries fell 19 percent from the week ended Aug. 19, and FHA share was off 12 percent. FHA inquiries accounted for 9.20 percent of this week’s business. Adjustable-rate mortgage activity fell 16 percent this week. The ARM share, however, climbed to 6.82 percent from 6.63 percent. Business deteriorated as the conforming 30-year mortgage climbed to 4.35 percent from last week’s 4.25 percent. The 30 year was up 3 basis points from the week ended Aug. 25, 2010. The spread between the jumbo 30 year and the conforming 30 year was unchanged from last week at 65 BPS. But the spread was much more narrow than the 88 BPS a year ago — indicating a big improvement in jumbo pricing over the past year. The 15-year became slightly more attractive at 81 BPS better than the 30 year versus last week’s spread of 80 BPS. Since last Friday, the yield on the 10-year Treasury has climbed 12 BPS to close today at 2.19 percent, according to data reported by the Department of the Treasury. The 10-year movement points to no changes for mortgage rates in next week’s report. |
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