As new adjustable-rate and government-insured business moved higher, jumbo activity retreated. Overall mortgage business, however, was little changed.
At 179 for the week ended May 20, the
U.S. Mortgage Market Index from OpenClose and
Mortgage Daily slipped 1 percent from a week earlier.
But compared to the same week last year, the index — which reflects average per-user rate locks pulled by OpenClose clients —
ascended 23 percent.
The numbers from a year earlier were revised to reflect statistics from the same data provider.
The biggest week-over-week loss was with rate locks for jumbo mortgages: 26 percent. Jumbo business has tumbled 28 percent from the week ended May 22, 2015 — the biggest year-over-year decline.
Jumbo share thinned to 6.4 percent from 8.5 percent the previous week and
10.8 percent this week the previous year.
Jumbo interest rates were 9 basis points higher than conforming rates. The jumbo-conforming spread was wider than 6 BPS in the last report but thinner than 17 BPS in the year-earlier report.
Rate locks for conventional loans fell 4 percent from the last report but have strengthened by 14 percent versus the same week in 2015.
There was virtually no change from the week ended May 13, 2016, recorded for
rate locks for purchase financing, though the category was up a quarter on a year-over-year basis.
At 121, the Refinance MMI was up 3 percent from the last report and up 54 percent from the year-earlier report.
Refinance share grew to 67.8 percent from 65.4 percent a week earlier and 53.9 percent a year earlier. This week’s share was comprised of a 41.5 percent rate-term share and a 26.3 percent cashout share.
Up next were rate locks for mortgages insured by the Federal Housing Administration, which ascended 8 percent and have soared 56 percent from 12 months ago — the biggest year-over-year gain of any category.
Rate locks for adjustable-rate mortgages climbed 13 percent from the prior week and 19 percent from a year prior.
ARM share was 9.2 percent, wider than 8.0 percent in the previous report and thinner than 9.5 percent in the year-previous report.
Conforming 30-year fixed rates averaged 3.58 percent, up a basis point from seven days earlier but 63 BPS better than 12 months earlier.
The spread between 15- and 30-year rates was 77 BPS, a little more than 76 BPS in the prior week but much less than 88 BPS a year prior.
Fixed rates are likely to be around 6 BPS higher in next week’s Mortgage Market Index report, according to a Mortgage Daily analysis of Treasury market activity.
