Prospective mortgage borrowers came charging out of the Thanksgiving holiday week — driving new business to the highest level since October. Leading the improvement was government-insured purchase financing.
A 59 percent spike from last week left the U.S. Mortgage Market Index from LoanSifter and Mortgage Daily at 187 for the week ended Dec. 6.
It was the busiest week since the week ended Oct. 25, when the Mortgage Market Index stood at 190.
The index, which reflect the average number of pricing inquiries per LoanSifter user, was down 57 percent from the same week in 2012. A revision was made to the year-earlier figures to reflect numbers from the same data provider.
A two-thirds rise from the week ended Nov. 29 was recorded for inquiries on purchase financing. The category was up just 1 percent from 12 months prior.
Inquiries for mortgages insured by the Federal Housing Administration leapt by 65 percent but were down 39 percent from the week ended Dec. 7, 2012. FHA share climbed to 23.5 percent from 22.6 percent and was just 15.8 percent one year earlier.
Adjustable-rate mortgage activity jumped 59 percent from last week but has fallen 46 percent over the past year. ARM share was unchanged at 3.9 percent but was up from 3.1 percent in the same report during 2012.
A 58 percent week-over-week increase was reported for conventional loans, though the category has tumbled 64 percent from a year ago.
Even refinance business was higher, jumping by more than half from last week. But Refinance inquiries have fallen by nearly three quarters from the same week last year.
Refinance share slipped to 43.5 percent from 45.8 percent and has dropped from 76.9 percent in the year-earlier report. This week’s share reflected a 27.3 percent rate-term share and a 16.2 percent cashout share.
The only category to show a loss was the jumbo category, with jumbo business falling 26 percent from the last report. Jumbo inquiries have fallen 62 percent from a year ago.
Jumbo share was cut to 1.9 percent from 4.0 percent a week earlier and 4.5 percent a year earlier.
The spread between conforming and jumbo rates soared to 85 basis points from just 37 BPS in the last report. The jumbo-conforming spread was even wider than 43 BPS a year ago.
Conforming 30-year fixed rates averaged 4.531 percent, sinking from 4.960 percent in the last report but up from 3.571 percent 12 months ago.
Fifteen-year mortgages were priced at 95 BPS less than 30-year loans. The spread sank from 135 BPS a week prior but was more than 59 BPS a year prior.,
Rates could be a little higher in next week’s report based on Mortgage Daily’s analysis of Treasury market activity.
The yield on the 10-year Treasury note averaged 2.84 percent during the period covered by this week’s index, while the 10-year yield closed at 2.88 percent Friday, according to Treasury Department data.
