As expected, new mortgage business turned sharply lower during the week that included Memorial Day. Business unexpectedly sank, though, from a year ago.
Mortgage Daily’s U.S. Mortgage Market Index, an indication of upcoming originations based on OpenClose rate-lock volume, was 116 in the week ended June 2.
Compared to the previous week, the index — which is not adjusted for seasonal variations — fell 25 percent.
It was the second consecutive week that it declined.
Similarly, the MMI tumbled 27 percent from the same week a year ago — which also included Memorial Day.
Leading the decline from the week ended May 25, 2017, were rate locks for adjustable-rate mortgages, which plunged 44 percent. ARM business slowed by just 12 percent, however, from the same week in 2016. ARM share thinned to 9.3 percent from 12.4 percent but was wider than 7.7 percent a year earlier.
A 31 percent week-over-week drop was recorded for jumbo business, while the category slowed by 22 percent on a year-over-year basis. Jumbo share was trimmed to 8.3 percent from 9.0 percent but was wider than 7.9 percent in the week ended June 3, 2016. The jumbo-conforming spread was unchanged from the last report at less than a negative basis point and swung from a positive 9 BPS a year prior.
At 43, the Government MMI fell 27 percent from the preceding week. Government share was 37.0 percent, more narrow than 38.1 percent a week previous. The latest share consisted of a 26.0 percent FHA share and an 11.0 percent VA share.
Up next was the Purchase MMI, which tumbled 27 percent to 82. Rate locks for purchase financing were down 26 percent from the upwardly revised level 12 months earlier.
The Conventional MMI moved down by 24 percent to 73.
Rate locks for refinances retreated 22 percent — the smallest week-over-week decline. Refinance business has fallen 30 percent from the downwardly revised level the same week in 2016. Refinance share widened to 29.3 percent from 28.1 percent but was more narrow than the downwardly revised 30.5 percent this week a year ago. This week’s share was comprised of a 14.5 percent rate-term share and a 14.9 percent cashout share.
