For the second week in a row, new mortgage business was slower — and jumbo activity took the biggest beating. Adjustable-rate activity, however, jumped.
A six percent decline from one week prior left the U.S. Mortgage Market Index from OpenClose and Mortgage Daily at 111 for the week ended Nov. 13.
The index, which is a measure of average per-user rate locks by clients of OpenClose, has moved down by a third compared to the same week during last year.
Figures for a year earlier have been revised to reflect numbers from the same data provider.
Leading the week-over-week decline were rate locks for jumbo mortgages, which tumbled 43 percent. Jumbo business was down by more than half from the week ended Nov. 14, 2014. Jumbo share plunged to 7.8 percent from 12.7 percent a week earlier and 10.8 percent a year earlier.
Interest rates on jumbo loans were 11 basis points less than on conforming mortgages. The jumbo-conforming spread tumbled sank from a negative 15 BPS in the last report but swung from a positive nine BPS in the year-prior report.
Next up were rate locks for mortgages insured by the Federal Housing Administration with a seven percent decline from the week ended Nov. 6, 2015. FHA business slowed two percent versus this week last year. FHA share was 21.6 percent, not much different than 21.9 percent seven days previous but much wider than 14.8 percent 12 months previous.
A six percent week-over-week decline was recorded for conventional business, while the category was down 38 percent on a year-over-year basis.
Purchase financing slowed five percent for the week and was down by a third from this week in 2014.
Rate locks for refinances were down just three percent, and the decline was 13 percent versus one year ago. Refinance share moved up to 70.1 percent from 67.7 percent the previous week and 53.9 percent in the year-prior week. The latest share consisted of a 43.9 percent rate-term share and a 26.2 percent cashout share.
The only category to see an improvement from the last report was the adjustable-rate mortgage category, which jumped 34 percent. ARM activity was virtually unchanged from the same week last year. ARM share leapt to 16.3 percent from 11.5 percent and was also solidly wider than 10.9 percent a year ago.
Fixed rates on 30-year mortgages averaged 3.98 percent, rising 11 BPS for the week. But 30-year rates have eased 38 BPS from 12 months earlier.
A 78-basis-point spread between 15- and 30-year mortgages was recorded. Fifteen-year rates were also 78 BPS less than 30-year rates a week earlier and were 89 BPS lower a year earlier.
A Mortgage Daily analysis of Treasury market activity indicates that fixed rates are likely to be around six BPS better in the next Mortgage Market Index report.
