New mortgage activity failed to surpass business in the prior week, though activity with adjustable-rate mortgages and refinances grew. Rates are set to tumble in the next report.
For the week ended May 15, the U.S. Mortgage Market Index from LoanSifter/Optimal Blue and Mortgage Daily was at 155.
Offering insight into average per-user product-and-pricing inquiries by clients of LoanSifter, the index dropped a little over one percent below the previous week’s mortgage activity. From the week ended May 16, 2014, the latest index retreated by a fifth.
Inquiries on adjustable-rate mortgages were the top gaining category on a week-over-week basis. Recent ARM business climbed five percent over the prior week. From May 16 last year, however, ARM inquiries shriveled by 40 percent — which was the worst activity sky fall on a year-over-year basis.
The latest ARM share widened to 9.9 percent from 9.3 percent a week ago, yet thinned from 13.2 percent for the week ended May 16 a year ago.
Refinance business rose a little over one percent from the week ended May 8, 2015, but the most current activity stumbled more than eight percent from the week ended May 16, 2014.
Refinance share grew to 53.8 percent from 52.6 percent a week prior. This growth was more apparent on a year-over-year basis since the share was only at 46.9 percent last year when May 16 closed out the week. The latest share included a 36.8 percent rate-term share and a 17.0 percent cashout share.
As May 15 closed out the week, jumbo loan inquiries were nearly one percent better than the prior seven days. Despite this small improvement, recent business declined by 14.5 percent compared to the same week in 2014.
Jumbo loan share widened to 11.1 percent from the previous week’s 10.9 percent and the May 16, 2014’s, 10.3 percent.
Jumbo interest rates were 16 basis points higher than conforming rates as of May 15 — less than the 17 BPS reported on May 8 and at an about-face from the negative seven BPS documented as of last year on May 16.
Dropping more than one percent from the prior week, inquiries on loans insured by the Federal Housing Administration were six percent higher than activity during the same week one year prior. Consequently, FHA business, on a year-over-year basis, was the best performing category.
At nearly 19.8 percent, FHA share saw a slight de-escalation from the more than 19.8 percent documented the week ended May 8. But compared to 14.8 percent from the same year-earlier time frame, recent FHA share was much fatter.
Conventional mortgage inquiries fell two percent from the prior seven days — a minimal amount considering the 28 percent decrease from May 16 last year.
As the worst week-over-week performing category, purchase financing dropped four percent from the prior week and sank 31 percent compared to the same week in 2014.
Fixed interest rates on conforming 30-year loans averaged 4.187 percent for the week — three basis points worse than the prior week. Still, the latest average was down 34 BPS from the same point last year.
Rate quotes for 15-year mortgages were 86 BPS better than on 30-year home loans, just a basis point wider than the week ended May 8. At the end of the same week a year ago, the spread was 99 BPS.
Next week, fixed rates might contract approximately 10 BPS from this week based on an analysis by Mortgage Daily of Treasury market activity.
