For the second week in a row, new residential lending activity accelerated, with government business out front during the most-recent seven-day period.
The U.S. Mortgage Market Index from OpenClose and Mortgage Daily was 150 in the week ended Feb. 10. No seasonal adjustments are made to the MMI.
Compared to the previous week, the index — an indication of upcoming loan originations based on OpenClose rate-lock volume — moved 12 percent higher.
But a 17 percent decline in activity was recorded for the MMI versus the same week last year.
The Government MMI was 55 this week, up from the week ended Feb. 3 by 18 percent — the largest
week-over-week increase of any category. Government share widened to 36.5 percent from 35.0 percent. The current week’s government share consisted of a 28.0 percent FHA share and an 8.5 percent VA share.
Rate locks for refinances jumped 16 percent from the last report but have fallen 30 percent from the downwardly revised level in the week ended Feb. 12, 2016. Refinance share widened to 36.5 percent from 35.4 percent a week earlier but thinned from the downwardly revised 43.4 percent a year earlier.
The latest refinance share was comprised of a 22.2 percent rate-term share and a 14.3 percent cashout share.
An 11 percent week-over-week gain was recorded for purchase financing activity, leaving the Purchase MMI at 95. Purchase rate locks have diminished, however, 7 percent versus the upwardly revised level a year ago.
Conventional rate locks increased 10 percent, leaving the Conventional MMI at 95.
Rate locks for adjustable-rate mortgages slowed 14 percent from the previous week and were down more than a third from a year previous. ARM share narrowed to 6.8 percent from 8.9 percent and was also more thin than 8.5 percent this week in 2016.
With an 18 percent week-over-week decline, the Jumbo MMI was 14. Jumbo business was up, though, 5 percent from 12 months earlier. Jumbo share was cut to 9.2 percent from 12.6 percent in the last report. But jumbo share widened from 7.2 percent the same week a year ago.
As of the most-recent seven-day period, which concluded at midnight last night, rates on jumbo mortgages averaged 11 basis points less than conforming interest rates. The jumbo-conforming spread widened from a negative 8 BPS the prior week but thinned from a negative 14 BPS a year prior.
