Just one week after plummeting to an all-time low, the U.S Mortgage Market Index rebounded, although it still remains well below recent norms.
In the week ended Jan. 6, the index — a gauge of upcoming originations based on average per-user rate locks by OpenClose clients — landed at 99.
That left the MMI 23 percent higher than the previous week, when it sank to the lowest level on record since it was launched in December 2009.
The index, which is not adjusted for seasonal factors, was still down 10 percent from the same week last year. But although the current week included New Years, the year-earlier period didn’t.
Making the biggest comeback were rate locks for refinances, which jumped 28 percent from the week ended Dec. 30, 2016. Refinance business was up 4 percent from this week in 2016. Refinance share widened to 38.2 percent from 36.9 percent and was also broader than 33.2 percent a year ago. The most-recent refinance share was comprised of a 21.9 percent rate-term share and a 16.3 percent cashout share.
The Government MMI was up 24 percent to 36. Government share was slightly wider at 36.7 percent versus 36.4 percent in the last report. This week’s government share consisted of a 27.5 percent FHA share and a 9.2 percent VA share.
A 23 percent week-over-week increase was recorded for the Conventional MMI, leaving it at 63.
After that was the Purchase MMI, which increased 21 percent to 61. But purchase business fell 17 percent from one year previous.
Rate locks for adjustable-rate mortgages climbed 9 percent from a week earlier but plunged 47 percent from a year earlier.
ARM share was reduced to 7.6 percent from 8.6 percent and slashed from 13.0 percent this week last year.
The Jumbo MMI was the worst-performing index, inching up just 2 percent. Jumbo business has tumbled 39 percent from one year ago. Jumbo share was cut to 5.2 percent from 6.3 percent the prior week and 7.7 percent a year prior.
Interest rates on jumbo mortgages were 4 basis points less than conforming rates. While there was no change in the jumbo-conforming spread from last week, it was slashed from a negative 17 BPS the same week last year.
