With government activity leading the way, new mortgage business turned lower last week. The proportion of people extracting home equity, meanwhile, widened to its broadest share on record.
In the seven days that concluded on Jan. 19, the
U.S. Mortgage Market Index from Mortgage Daily, a barometer of upcoming loan closings based rate-lock activity at OpenClose, was 111.
The index, which is not adjusted to reflect seasonal factors,
descended 8 percent from the preceding seven-day period. Compared to the same seven days last year, the index fell 9 percent.
Rate locks for government mortgages tumbled from the week ended Jan. 12 by 12 percent, the most of any category. Government business slowed 5 percent from a year previous. Government share was 38.5 percent and consisted of a 24.4 percent FHA share and a 14.0 percent VA share. Government share was 40.3 percent a week earlier and 36.9 percent a year earlier.
A nearly 10 percent decline for the Purchase MMI left it at 59. The index fell 17 percent from the week ended Jan. 20, 2017.
Rate locks for adjustable-rate mortgages fell 9 percent but have soared 37 percent from the same report a year ago. ARM share was trimmed to 13.5 percent from 13.6 percent but was far wider than 9.0 percent a year prior.
Jumbo business was off more than 7 percent and has fallen 24 percent from a year earlier. Jumbo share was 9.4 percent, slightly wider than 9.2 percent the previous week but more narrow than 11.2 percent twelve months ago. Jumbo interest rates were 29 basis points more than conforming rates reported by Freddie Mac, no different than in the last report. In the same week during 2017, jumbo rates were 7 BPS less than conforming rates.
Refinance rate locks retreated 7 percent but have risen 3 percent on a year-over-year basis. Refinance share widened to 46.6 percent from 45.8 percent and was also fatter than 41.3 percent in the report from one year ago.
The most-recent share was comprised of a 16.8 percent rate-term share and a 29.8 percent cashout share. It was the broadest cashout share on record since the Mortgage Market Index was created in late 2009.
At 68, the Conventional MMI was 6 percent lower than a week earlier and 11 percent less than a year earlier.
