Purchase Financing Strong in Weekly Mortgage Market Index

Purchase Financing Strong in Weekly Mortgage Market Index


DALLAS — (Dec. 23, 2013) While overall mortgage business has softened over the past year, purchase financing is up by more than half. Also continuing to show strength is adjustable-rate activity.

The U.S. Mortgage Market Index from LoanSifter and Mortgage Daily was 171 for the week ended Dec. 20, climbing 9 percent from a week earlier. The index reflects average pricing inquiries per LoanSifter user.

But compared to a year previous, the index has tumbled 31 percent. The year-earlier numbers were revised to reflect statistics from the same data provider.

A portion of the data was mistakenly deleted from LoanSifter’s programming — impacting Mortgage Market Index reports from Nov. 22, 2013, through Dec. 6, 2013. In particular, the share of adjustable-rate mortgages, Federal Housing Administration-insured loans and jumbo mortgages might have been off. The fully restored data was used in the latest report.

A 39 percent increase from a year earlier was recorded for ARM activity. ARM share was 11.2 percent in the most recent report versus just 3.2 percent in the week ended Dec. 21, 2012.

Jumbo pricing inquiries were off 31 percent from the same week last year. Jumbo share climbed to 6.8 percent from only 4.2 percent 12 months prior.

Jumbo rates were 22 basis points higher than conforming rates. At the same point in 2012, the jumbo-conforming spread was 43 BPS.

Refinance activity rose 17 percent from the week ended Dec. 13 but was down 58 percent from a year ago. Refinance share increased to 49.1 percent from 45.7 percent but has plummeted from 75.4 percent a year earlier. The most recent share included a 33.6 percent rate-term share and a 15.5 percent cashout share.

Conventional volume jumped 14 percent from the last report but has diminished by 41 percent over the past year.

Purchase financing picked up, with pricing inquiries increasing 2 percent on a week-over-week basis. Purchase business has soared 53 percent from a year prior.

FHA activity was down 8 percent from a year ago even though FHA share has risen to 18.4 percent from 16.7 percent during the same period.

Conventional 30-year fixed rates averaged 4.767 percent, easing from 4.891 percent seven days earlier but increasing from 3.629 percent 12 months earlier.

Average 15-year fixed rates were 99 BPS lower than 30-year rates. The spread narrowed from 116 BPS in the prior report but widened from 64 BPS in the year-earlier report.