Pricing inquiries for prospective borrowers were off slightly this week, with government-insured activity leading the decline. But jumbo business was stronger. Mortgage rates fell and could decline further.
As of the week ended April 12, the U.S. Mortgage Market Index from LoanSifter and Mortgage Daily was 277.
This week’s numbers reflect a change in the data provider to LoanSifter. The index is now based on pricing inquiries per user of the pricing engine. The prior data provider used rate locks.
One of several benefits of using the LoanSifter data is a refinance share that is more in line with other industry estimates. A white paper discusses LoanSifter’s data.
Using revised historical data from LoanSifter, activity was off less than 1 percent from the previous week but 12 percent better than the same week last year.
Jumbo pricing inquiries gained 5 percent over the week ended April 5 — more than any other category. Jumbo business was 21 percent better than a year earlier.
Jumbo mortgages were priced at a 30-basis-point premium over conforming loans, worsening from the previous week’s 24-basis-point jumbo-conforming spread. But the spread remains better than the same week in 2012, when it was 45 BPS.
Purchase activity was up more than 1 percent for the week and nearly 7 percent higher than a year prior.
A nearly 1 percent gain was recorded for adjustable-rate mortgages. But ARM activity has tumbled 48 percent from the week ended April 13, 2012. ARM share was a little more than 4.8 percent versus a little less than 4.8 percent in the previous report. ARMÂ share was 10.3 percent in the year earlier period.
Conventional activity was off less than 1 percent on a week-over-week basis but 11 percent better on a year-over-year basis.
Refinances slowed by 1 percent but came in 14 percent higher than the same week in 2012. Total refinance share, meanwhile, slipped to 69.1 percent from 69.7 percent seven days prior and 67.6 percent a year prior. This week’s total share reflected a 55.8 percent rate-term share and a 13.3 cashout share.
Pricing inquiries for loans insured by the Federal Housing Administration fell by 4 percent from last week — more than any other category — but were barely changed from the year-earlier period. FHA share was 14.5 percent, off from 15.0 percent in the previous report and 16.2 percent a year previous.
The 30-year fixed-rate mortgage averaged 3.736 percent, falling from 3.782 percent. The 30 year was 4.115 percent in the same week last year.
Borrowers opting for a shorter-term 15-year mortgage had a rate that was discounted 75 BPS over 30-year rates. The spread was off from 76 BPS in the previous report and 77 BPS this week last year.
The yield on the 10-year Treasury note averaged 1.79 percent during the week covered by this report, according to Treasury Department data. The 10-year yield closed at 1.74 percent Friday, suggesting that mortgage rates could be around 4 BPS better in the next Mortgage Market Index report.
