Mortgage shopping activity mostly recovered from the holiday week, with adjustable-rate and government programs leading the way. While refinance business grew by more than half from last year, home-purchase financing has fallen.
The U.S. Mortgage Market Index from Mortech Inc. and MortgageDaily.com for the week ended Dec. 2 was 231. The index, based on the number of pricing inquiries pulled by loans originators, soared from 161 last week — which included the Thanksgiving holiday.
New activity was up 23 percent from the week ended Dec. 1, 2010.
Inquiries for adjustable-rate mortgages increased 56 percent from the week ended Nov. 25. ARM share expanded to 5.94 percent from 5.50 percent.
New Federal Housing Administration activity climbed by half during the past seven days, while conventional business improved 43 percent. FHA share moved up to 11.54 percent from 11.41 percent.
Refinance inquiries increased 44 percent this past week and were up 56 percent from the same week during 2010. Refinance share rose to 64 percent from 63 percent and was just 50 percent a year ago. This week’s share was comprised of a 49 percent rate-term share and a 15 percent cashout share.
The number of people who inquired about financing a home purchase grew by 42 percent from the previous report. Purchase activity was down, however, 11 percent from the same week last year.
Prospective borrowers who were searching for a conforming 30-year fixed-rate mortgage were quoted an average rate of 4.22 percent this past week, 1 basis point more than a week earlier but 29 BPS better than a year earlier.
Customers seeking a 15-year loan were quoted a rate that was priced 64 BPS lower than the 30 year, an improvement over the 61-basis-point discount in the previous report.
Jumbo rates were 66Â BPS more than conforming rates, a little better than the 68-basis-point jumbo-conforming spread last week and a lot better than 82 BPS a year prior.
An analysis of data from the Department of the Treasury on 10-year Treasury note activity indicates that mortgage rates aren’t likely to be much different in next week’s report.
