Weekly Mortgage Market Index Rises on Refis

Weekly Mortgage Market Index Rises on Refis


DALLAS — (Oct. 28, 2013) Mortgage rates tumbled last week, and prospective borrowers immediately seized the opportunity to lock in their refinances. Jumbo business also surged.

An 8 percent increase from a week earlier left the U.S. Mortgage Market Index from LoanSifter and Mortgage Daily for the week ended Oct. 25 at 190. The index reflects average per-user pricing inquiries at LoanSifter.

Compared to the same week last year, however, the index was down nearly a third. Year-earlier figures were adjusted to reflect statistics from the same data provider.

Leading the weekly increase were refinances, with pricing inquiries rising 13 percent from the week ended Oct. 18. Refinance activity, however, was down by more than half from a year earlier.

Refinance share rose to 53.3 percent from 50.9 percent but was well short of the 76.3 percent share as of the week ended Oct. 26, 2012. The most recent share consisted of a 38.8 percent rate-term share and a 14.5 percent cashout share.

Jumbo pricing inquiries leapt 12 percent and were more than a third higher than the same week in 2012. Jumbo share widened to 7.9 percent from 7.6 percent a week earlier and 4.0 percent a year earlier.

Interest rates on jumbo mortgages were 29 basis points higher than on conforming loans. The jumbo-conforming spread improved from 32 BPS in the previous report and 48 BPS in the year-earlier report.

Inquiries for adjustable-rate mortgages were up 10 percent and have more than doubled over the prior year. ARM share increased to 10.7 percent from 10.5 percent and was only 3.6 percent 12 months prior.

Conventional activity rose 6 percent but remains 37 percent below the same week last year.

Pricing inquiries for loans insured by the Federal Housing Administration were 5 percent higher but down 37 percent over the past 12 months. FHA share slipped to 14.8 percent from 15.1 percent one week earlier and 16.0 percent one year earlier.

The smallest week-over-week gain was with inquiries for purchase financing, which were 2 percent higher. Purchase business stood a third higher than during the same week last year.

Conforming 30-year fixed rates averaged 4.407 percent, retreating from the previous week’s 4.524 percent. The 30 year averaged 3.660 percent at the same point in 2012.

Fifteen-year loans were priced at a 90-basis-point discount to 30-year loans, not quite as good as the 92-basis-point spread in the last report. The spread was better, however, than 63 BPS a year earlier.