New mortgage activity ascended last week, and a surge in adjustable-rate and jumbo business led the improvement.
A 6 percent gain over a week earlier left the U.S. Mortgage Market Index from OpenClose and Mortgage Daily at 148 for the week ended June 26. The index reflects activity through midnight Thursday.
The MMI index — a representation of average per-user rate locks by OpenClose clients — has ascended 8
percent versus the same week last year.
Both the week-earlier and year-earlier numbers were revised to reflect figures from the same data provider.
Rate locks for adjustable-rate mortgages soared 41 percent from a week earlier, the biggest week-over-week gain of an category. ARM activity was up 19 percent over the week ended July 4, 2014. ARMs accounted for 11.3 percent of all business, widening from 8.5 percent in the prior report and 10.2 percent in the year-prior report.
Jumbo volume climbed 39 percent from the week ended June 26, 2015, and has risen 15 percent on a year-over-year basis. Jumbo share fattened to 11.7 percent from 8.9 percent and was also wider than 11.0 percent the same week in 2014.
Jumbo interest rates were 13 basis points less than conforming rates, widening from a negative jumbo-conforming spread of seven BPS seven days prior. Twelve months prior, the spread was a negative eight BPS.
A 17 percent rise was recorded for rate lock volume on mortgages insured by the Federal Housing Administration. FHA business was up by more than two-thirds compared to 12 months prior. FHA share was 24.2 percent, more than 21.9 percent in the previous report and 15.6 percent in the year-earlier report.
Purchase financing was up more than four percent for the week but off two percent for the year.
Refinance rate locks increased three percent and were up by nearly a third from the same week in 2014. Refinance share slipped to 55.9 percent from 57.3 percent but was far wider than 45.7 percent 12 months previous. The most-recent share included a 36.6 percent rate-term share and a 19.3 percent cashout share.
A less than three percent week-over-week gain for conventional loans was the smallest of any category. Conventional rate locks slowed three percent from the same period last year.
Thirty-year fixed conventional rates averaged 4.08 percent, up six BPS from seven days earlier but 42 BPS better than one year earlier.
Fifteen-year rates were 84 BPS less than 30-year rates. The spread widened from 81 BPS in the last report but narrowed from 98 BPS in the year-previous report.
Mortgage Daily’s analysis of Treasury market activity indicates that fixed rates are likely to move little or inch up slightly in the next report.
