New mortgage activity fell 11 percent this past week. Much of the deterioration can be attributed to refinance transactions.
The U.S. Mortgage Market Index from Mortech Inc. and MortgageDaily.com for the week ended March 25 was 195, falling from 220 a week earlier. The index, which reflects new loan pricing inquires by Mortech customers, was 229 during the same week last year.
Leading the latest weekly decline was an 18 percent drop in refinance activity. Total refinance share fell to 47 percent from 50 percent the previous week. But refinance share was little changed from 48 percent a year earlier.
Refinance share reflected a 33 percent rate-term share and a 13 percent cashout share.
Purchase activity was down almost 5 percent, and borrowers who opted for an adjustable-rate mortgage saw a 10 percent decline. ARM share rose, however, to 9.53 percent in the March 25 report from the prior week’s 9.43 percent.
Jumbo borrowers, those shopping for a mortgage of more than $417,000, saw a slight improvement in rates — with the spread between the conforming 30-year and the jumbo 30-year trimmed to 61 basis points from the previous week’s 63 BPS.
Loan prospects who prefer a shorter-term mortgage saw the spread between the 30-year and the 15-year fixed-rate mortgage wane, easing to 80 BPS from 81Â BPS seven days prior.
