Though weekly mortgage activity fell back, jumbo mortgage business leapt ahead in spite of a less favorable jumbo-conforming spread.
In the week ended July 31, the U.S. Mortgage Market Index from OpenClose and Mortgage Daily was 133.
The index, a reflection of average product-and-pricing inquiries per OpenClose user, was down six percent from the previous week and tumbled 21 percent from the same week last year.
Jumbo mortgage activity, however, flew ahead with business up 27 percent over the prior week and 28 percent over the same week in 2014. Jumbo share soared to 16.0 percent from 11.9 percent and surpassed the 9.9 percent share reported for the week ended Aug. 1, 2014.
Jumbo loan interest rates were 18 basis points less than rates on conforming loans. The jumbo-conforming spread narrowed from a negative 22 BPS in the last report but widened from a negative 11 BPS one year prior.
Despite jumbo business growing, other areas of weekly mortgage activity regressed.
Loans insured by the Federal Housing Administration had the biggest week-over-week activity decline at 20 percent. Still, FHA business was up four percent from the week ended Aug 1, 2014. FHA share dropped to 20.6 percent from 24.3 percent a week earlier but rose from 15.8 percent a year earlier.
Next up was refinance activity, which fell 13 percent from the week prior and 10 percent from the same week last year. Refinance share dropped to 52.0 percent from 56.2 percent in the previous week’s report. The most-recent figure was up, however, from 45.6 percent in the year-earlier report. The latest share included a 33.7 percent rate-term share and an 18.3 percent cashout share.
Adjustable-rate mortgage inquiries fell 10 percent from the last report. ARM business dove 28 percent from a year prior — the worst performing category on a year-over-year basis. ARM share narrowed to 9.8 percent from 10.2 percent seven days prior and 10.8 percent the same week in 2014.
With purchase financing, business was down four percent from the preceding week and a quarter behind activity logged from one year previous.
Conventional mortgage activity shrank two percent from seven days earlier. A 25 percent decline was recorded from the same seven-day period last year.
Average 30-year fixed rates dropped six BPS from the previous week to 3.98 percent and were down 55 BPS from the same week last year.
Fifteen-year mortgage rates were 81 BPS better than rates for 30-year mortgages. The spread thinned from 83 BPS seven days prior and 96 BPS twelve months previous.
A Mortgage Daily analysis of Treasury market activity suggests that fixed rates might be roughly seven BPS lower in the next report.
