Weekly mortgage activity turned higher, and government-insured business saw the biggest improvement for the second week in a row.
The U.S. Mortgage Market Index from LoanSifter/Optimal Blue and Mortgage Daily for the week ended Jan. 30 was 259.
Compared to the previous report, the index — which is reflective of average per-user pricing inquiries by LoanSifter clients — was up 6 percent.
A 54 percent gain was made over the same week last year.
The biggest week-over-week gain was made on inquiries for loans insured by the Federal Housing Administration: 11 percent. FHA business was up 73 percent from the week ended Jan. 31, 2014.
It was the second week in a row FHA led all categories and reflects the impact of recently lowered FHA premiums.
FHA share widened to 17.4 percent from 16.6 percent in the prior report and 15.5 percent in the year-earlier report.
Inquiries for refinances were up 8 percent from the week ended Jan. 23 and have more than doubled compared to the same week in 2014. The increase in refinances expanded refinance share to 69.2 percent from 67.6 percent a week earlier and 50.3 percent a year earlier. The most recent share was comprised of a 54.6 percent rate-term share and a 14.6 percent cashout share.
Jumbo activity increased 6 percent and has risen 63 percent from the same week in 2014. Jumbo share was minimally wider at 10.2 percent versus 10.1 percent in the previous report. Jumbo share was also wider than 9.6 percent 12 months prior.
Jumbo pricing inquiries yielded rates that were 20 BPS more than conforming loans. The jumbo-conforming spread widened from 19 BPS one week earlier and 10 BPS one year earlier.
Inquiries for conventional loans ascended 5 percent from the prior report and were up by more than half from the year-earlier report.
A nearly 1 percent week-over-week gain was made on adjustable-rate mortgages. ARM activity was up 8 percent from the same week last year. ARM share thinned to 8.9 percent from 9.4 percent and was down from 12.7 percent 12 months prior.
A less than 1 percent week-over-week gain was made on purchase inquiries, and the category was down 5 percent from the same week in 2014.
Conforming 30-year fixed rates averaged 3.993 percent, slipping from 4.024 percent the previous week. Thirty-year rates averaged 4.652 percent 12 months prior.
Fifteen-year rates were 81 BPS better than 30-year rates, a slightly more narrow spread than 82 BPS one week prior and much thinner than 96 BPS one year prior.
Fixed rates are positioned to decline around 9 BPS by the time the next Mortgage Market Index report is released based on Mortgage Daily’s analysis of weekly Treasury market activity.
