New mortgage activity fell last week, though — given the Thanksgiving holiday and Black Friday — the decline was modest. Adjustable-rate business sank.
A 19 percent drop from a week prior left the U.S. Mortgage Market Index from OpenClose and Mortgage Daily at 107 for the week ended Nov. 27.
The index, a representation of average per-user rate locks by clients of OpenClose, was down 12 percent compared to the same week one year earlier.
Figures from the
a year previous were revised to reflect statistics from the same data provider.
Leading the
decline from the week ended Nov. 20, 2015, were rate locks for adjustable-rate mortgages — tumbling 39 percent. On a year-over-year basis, ARM business fell 28 percent — also the biggest drop. ARM share fell to 9.3 percent from 12.3 percent in the prior report and 11.3 percent in the year-earlier report.
Up next was jumbo business, which descended 35 percent. Jumbo activity retreated 27 percent from the week ended Nov. 28, 2014. Jumbo share slid to 8.9 percent from 11.1 percent a week earlier and 10.8 percent a year earlier.
Rate locks for jumbo mortgages averaged 22 basis points less than for conforming loans. The jumbo-conforming spread widened from a negative 19 BPS in the previous report and swung from a positive 15 BPS in the year-previous report.
A one-fifth drop from the last report was recorded for conventional volume, while the decline was 21 percent from the year-earlier report.
On purchase financing, rate locks retreated 19 percent for the week and were off just seven percent for the year.
Refinance business slowed by more than 17 percent, though the category accelerated nine percent versus the same week during 2014. Refinance share thickened to 68.2 percent from 66.8 percent and was also wider than 55.3 percent twelve months previous. The most-recent share was comprised of a 42.6 percent rate-term share and a 25.5 percent cashout share.
There was a less than 17 percent week-over-week reduction in rate locks for mortgages insured by the Federal Housing Administration — the smallest loss of any category. FHA business was up, however, 43 percent from a year prior — the best year-over-year gain. FHA share widened to 22.9 percent from 22.2 percent and was just 14.1 percent as of the same week last year.
Fixed interest rates on 30-year
home loans averaged 3.95 percent, down two BPS from the last report and 36 BPS better than the year-earlier report.
On 15-year loans, rates were 77 BPS lower than on 30-year loans. The spread was 79 BPS one week previous and 94 BPS one year previous.
In the next Mortgage Market Index report, fixed rates are likely to be around three BPS lower, based on Mortgage Daily’s analysis of Treasury market activity.
