Although weekly home purchase financing activity moved higher, a reduction in the volume of refinance business pulled down overall new activity.
The U.S Mortgage Market Index from OpenClose and Mortgage Daily, an indication of upcoming originations, was 119 in the week ended Jan. 27.
That was a 2 percent decline from the previous week for the index, which is determined based on average rate-lock volume by clients of OpenClose.
Compared to the same week last year, the index, which is not adjusted for seasonal factors,
was virtually unchanged.
Leading the index lower was refinance activity, which retreated 15 percent from the week ended Jan. 20. Refinance business inched up 1 percent, though, versus the downwardly revised level for a year prior. Refinance share was cut to 35.7 percent from 41.2 percent but was slightly wider than the downwardly revised 35.1 percent one year earlier. The latest share was comprised of a 19.7 percent rate-term share and a 16.0 percent cashout share
An 8 percent week-over-week drop was recorded for adjustable-rate mortgages. ARM business fell 13 percent from the week ended Jan. 29, 2016. ARM share
thinned to 8.5 percent from 9.0 percent and was also more narrow than 9.7 percent the same week in 2016.
Rate locks for government mortgages fell 6 percent from the last report, leaving the Government MMI at 42. Government share thinned to 35.5 percent from 36.9 percent. The most-recent share consisted of a 26.7 percent FHA share and an 8.8 percent VA share.
Jumbo activity slipped 3 percent for the week but has soared 59 percent from a year ago. Jumbo share was unchanged at 11.2 percent but much wider than 7.0 percent in the year-earlier report. Interest rates on jumbo mortgages were 8 basis points less than conforming rates. The jumbo-conforming spread widened from a negative 7 BPS a week earlier but was far more narrow than a negative 18 BPS a year earlier.
There was no week-over-week change in conventional activity, leaving the Conventional MMI at 77.
The only category to experience in increase from the prior week was the Purchase MMI, which rose 7 percent to 77. Still, purchase activity slipped a percent from the upwardly revised level one year ago.
