Government activity led an increase in new weekly mortgage business. Excluded from the rally, though, were jumbo and adjustable-rate mortgages.
The U.S. Mortgage Market Index from Mortgage Daily, a barometer of pending mortgage transactions, was 152 in the week ended Oct. 6.
A 14 percent increase was made versus the previous week for the index, which is based on average per-user rate-lock volume by clients of OpenClose.
Compared to the same seven days last year, the index — which is not seasonally adjusted — was down 6 percent.
Government business increased from the week ended Sept. 29, 2017, by 24 percent — more than any other category. Government activity has ascended 29 percent from the same week a year ago. Government share widened to 40.2 percent from 36.7 percent a week earlier and 29.3 percent a year earlier. The latest share was made up of a 26.8 percent FHA share and a 13.4 percent VA share.
A 14 percent week-over-week rise was recorded for the Purchase MMI, which was 94. There was a 4 percent dropped from the week ended Oct. 7, 2016, for purchase-money lending.
Refinance rate locks rose 13 percent from the preceding week but receded 10 percent from a year prior. Refinance share thinned to 37.8 percent from 38.0 percent the prior week and 39.4 percent twelve months prior. Most recently, refinance share was comprised of a 17.5 percent rate-term share and a 20.3 percent cashout share.
Conventional rate locks were up 7 percent from the last report, placing the Conventional MMI at 91. But a 21 percent drop was recorded versus a year earlier.
Unlike most categories, rate locks for jumbo mortgages tumbled 15 percent from the previous report. Jumbo activity has plunged from the same week the previous year by 42 percent
— the largest year-over-year decline. Jumbo share was trimmed to 7.1 percent from 9.5 percent and was far more narrow than 11.5 percent the same week in 2016.
Interest rates were 12 basis points more for jumbo mortgages than conforming loans, down from 14 BPS in the last report but up from 8 BPS one year prior.
Turning in the worst week-over-week performance was the ARM MMI, which plummeted 31 percent. But compared to the same seven-day period in 2016, a 32 percent jump was observed — more than any other category. ARM share was slashed to 9.7 percent from 16.1 percent but still wound up being more broad than 6.9 percent a year previous.
