The difference between interest rates on conforming and jumbo mortgages nearly disappeared this week, prompting a slight uptick in jumbo activity despite an overall slide.
At 157, the U.S. Mortgage Market Index from LoanSifter and Mortgage Daily for the week ended Feb. 14 was 9 percent lower than a week earlier.
The index sank 40 percent compared to the same week in 2013. The year-earlier numbers were updated to reflect statistics from the same data provider.
Pricing inquiries for refinances tumbled 15 percent from the week ended Feb. 7, more than any other category. Refinances have slowed by 59 percent compared to the same week in 2013.
Refinances represented 48.6 percent of the latest weekly activity. Refinance share was lower than 51.7 percent in the prior report and 70.1 percent in the same report from the prior year. This week’s total share consisted of a 34.9 percent rate-term share and a 13.7 percent cashout share.
Conventional inquiries had the next-biggest decline, falling 11 percent for the week and down by 45 percent compared to the week ended Feb. 15, 2013.
After that were adjustable-rate mortgages, with ARM activity retreating 8 percent from seven days earlier but soaring 82 percent from a year earlier. ARMÂ share widened to 12.9 percent from 12.7 percent and was triple the 4.2 percent share as of the same week in 2013.
Inquiries for mortgages insured by the Federal Housing Administration were down 4 percent from last week and off by more than half from this week last year. FHAÂ share moved up to 15.1 percent from 14.3 percent in the prior report but has retreated from 18.6 percent in the year-earlier report.
Less than a 4 percent week-over-week decline was reported for purchase financing, and purchase inquiries were up 3 percent compared to 52 weeks earlier.
Jumbo inquiries were the only category to avoid a decline form the prior week. Jumbo business inched up less than a percent from seven days earlier and has increased 20 percent from 12 months earlier.
Jumbo share rose to 10.5 percent from 9.5 percent and was more than double the 5.2 percent share in the same report during 2013.
Jumbo mortgages were priced at just 5 basis points more than conforming loans. The jumbo-conforming spread sank from 12 BPS in the last report and 28 BPS a year earlier.
Conforming 30-year fixed rates averaged 4.629 percent, rising from the previous week’s 4.598 percent average. The 30 year was just 3.833 percent at the same point in 2013.
Applicants on 15-year mortgages were quoted rates that averaged 99 BPSÂ less than rates for 30-year customers. The spread widened from 98 BPS in the last report and 72 BPS in the year-earlier report.
An analysis of Treasury market activity during the week reflected in the latest index indicates that mortgage rates are likely to be not much different in the next report.
During the week covered in the Mortgage Market Index report, the yield on the 10-year Treasury note — which is tracked by long-term fixed mortgage rates — was 2.75 percent, according to Treasury Department data. The 10-year yield closed at 2.75 percent Friday.
