Originators weren’t quite as busy in the week that included Mothers Day even though mortgage rates were lower and are likely to fall further in the next report.
A 10 percent week-over-week decline was measured for the
U.S. Mortgage Market Index from OpenClose and
Mortgage Daily in the week ended May 13.
However the index, which is a representation of average per-user rate-lock volume by clients of OpenClose, moved up 17 percent from the same week last year.
Year-earlier numbers have been revised to reflect comparison statistics from the same
data provider.
Rate locks for FHA loans fell 17 percent from the week ended May 6. FHA business was 43 percent better, however, than in the year-prior report. FHA volume accounted for 24.3 percent of all activity in the current report. FHA share slipped from 26.3 percent a week earlier but widened from 19.8 percent a year earlier.
Refinance business fell 11 percent but was 42 percent better than in the week ended May 15, 2015. Refinance share — which consisted of a 41.8 percent rate-term share and a 23.6 percent cashout share — thinned to 65.4 percent from 66.5 percent but was wider than 53.9 percent a year ago.
Purchase financing was 9 percent weaker on a week-over-week basis but 18 percent stronger on a year-over-year basis.
An 8 percent decline was recorded for adjustable-rate mortgages. ARM rate locks were off 5 percent from this week last year. ARM share was slightly thicker at 8.0 percent versus 7.9 percent in the last report and thinner compared to 9.9 percent during the same week in 2015.
Conventional rate locks fell 7 percent but were a tenth higher, however, than a year prior.
Jumbo proved to be the only category with a gain from the report seven days earlier,
climbing 18 percent. Jumbo business, however, was down 11 percent from this week last year. At 8.5 percent, jumbo share was wider than 6.6 percent in the last report and more narrow than 11.3 percent in the year-earlier report.
Originators pulling rate locks for jumbo mortgages were quoted rates that were 6 basis points higher than on conforming loans. The jumbo-conforming spread swung from a negative 3 BPS last week and was not as wide as the positive 16 BPS this week last year.
Conforming 30-year fixed rates averaged 3.57 percent, 4 BPS better than the last report and a whopping 62-basis-point improvement from the year-earlier report.
Fifteen-year rates were 76 BPS lower than 30-year rates. The spread was minimally wider than 75 BPS one week prior and thinner than 86 BPS one year prior.
Fixed mortgage rates are likely to be 4 BPS better in the next Mortgage Market Index report based on a Mortgage Daily analysis of Treasury market data.
