PRESSÂ RELEASE
Jumbo Lending Leads Decline in Weekly Mortgage Market Index DALLAS — (Sept. 10, 2012) Consumers abandoned the mortgage market for the Labor Day holiday, with jumbo borrowers leading the way despite a decline in the premium for a jumbo loan. The share of activity represented by adjustable-rate mortgages continued to diminish and has plummeted nearly three quarters over the past year. At 172, the U.S. Mortgage Market Index from Mortech Inc. and Mortgage Daily for the week ended Sept. 7 was 18 percent lower than a week earlier. Compared to the same week in 2011, pricing inquiries have fallen by nearly a third. The biggest decline was recorded with jumbo mortgages, with inquiries for jumbo loans tumbling 21 percent from the week ended Aug. 31. Jumbo share fell to 8.4 percent from 8.8 percent. Jumbo activity was lower despite that the premium for a jumbo mortgage fell to 66 basis points over a conforming mortgage from 71 BPS in the previous report. But the jumbo-conforming spread has widened from 62 BPS in the week ended Sept. 9, 2011. Inquiries for loans insured by the Federal Housing Administration were down 18 percent for the week and have fallen 21 percent from the same week last year. FHA share slipped to 11.0 percent from 11.1 percent the previous week but strengthened from 9.3 percent a year earlier. Also declining 18 percent for the week were inquiries for refinances. Over the past 12 months, refinance activity has fallen by more than a quarter. Refinance share was little changed from the prior report at 72.2 percent. But the proportion of business that is refinance has widened from 67.1 percent in the same week during 2011. The latest refinance share reflected a 57.3 percent rate-term share and a 14.9 percent cashout share. Conventional loan inquiries fell nearly 18 percent from a week earlier and were down a third from a year earlier. ARM inquiries were off by 17 percent for the week and have plunged 72 percent from the same week in 2011. ARM share was hardly changed for the week at 2.8 percent but has tumbled from 6.7 percent in the year-earlier report. The least-worst performance was delivered by the purchase financing category, which was down less than 17 percent from the previous report. But purchase activity remains 43 percent lower than a year prior. Mortgage rates eased, with the fixed-rate 30-year mortgage averaging 3.648 percent versus 3.684 percent in the prior report. A year previous, the 30 year was 4.237 percent. Borrowers who opted for a shorter term 15-year mortgage were quoted a rate that was 63 BPS better than 30-year loans, not as good as the 65-basis-point discount in the last report. The spread between 15- and 30-year loans was 81 BPS a year prior. |
||||||||||||||||||||||||||||||||||||||||||||||
Full Mortgage Market Index Report
|
||||||||||||||||||||||||||||||||||||||||||||||
About Mortech, Inc. CONTACT: Source:Â MortgageDaily.com |
FREE CALCULATORS TO HELP YOU SUCCEED
Tools for Your Next Big Decision.
Amortization Calculator
Affordability Calculator
Mortgage Calculator
Refinance Calculator
FHA Mortgage Calculator
VA Mortgage Calculator
Real Estate Calculator
Tags
Pre-Approval Resources!
Making well educated decions in a matter of minutes and stay up to date on the latest news Mortgage Daily has to offer. Read our latest articles to stay up to date on what’s going on…
Resource Center
Since 1998, Mortgage Daily has helped millions of people such as yourself navigate the complicated hurdles of the mortgage industry. See our popular topics below, search our website. With over 300,000 articles, we are guaranteed to have something for you.
TOP SEARCHED TOPICS
Your mortgages approval starts here.
Add 1-2 sentence here. Add 1-2 sentence here. Add 1-2 sentence here. Add 1-2 sentence here. Add 1-2 sentence here.
Stay Up To Date with Today’s Latest Rates
Mortgage
Today’s rates starting at
Home Refinance
Today’s rates starting at
Home Equity
Today’s rates starting at
HELOC
Today’s rates starting at