An uptick in purchase, jumbo and adjustable-rate activity this week was offset by easing in refinance and government business. Mortgage rates slipped this week and might tumble in the next report.
At 215, the U.S. Mortgage Market Index from Mortech Inc. and Mortgage Daily for the week ended April 6 was unchanged from the week ended March 30. But the index, which reflects pricing inquiries pulled by loan originator clients of Mortech, has improved 8 percent from the same week last year.
Refinance inquiries were down 2 percent from last week but 61 percent higher than the week ended April 8, 2011. At the same time, the share of overall inquiries that were for refinances slipped to 61 percent from 62 percent but was up from 41 percent a year ago. This week’s share was based on a 48 percent rate-term share and a 13 percent cashout share.
Also falling 2 percent from a week ago were inquiries for loans insured by the Federal Housing Administration. The share of this week’s business that was for FHA loans eased to 14.5 percent from 14.8 percent.
Inquiries for conventional mortgages were not changed over the past seven days.
Jumbo mortgage activity inched up 1 percent from last week as jumbo share was slightly higher at 8.3 percent versus 8.2 percent a week prior.
Pricing inquiries for adjustable-rate mortgages also crept up 1 percent, while ARMÂ share drifted up to 4.4 percent from 4.3 percent.
The best-performing category this week was purchase financing, which rose 2 percent from last week. But purchase business tumbled 30 percent from the same week in 2011.
Mortgage rates eased over the past seven days, with the 30-year fixed-rate mortgage falling to 4.195 percent from 4.207 percent a week earlier and 5.083 percent a year earlier.
The discount for a 15-year mortgage was 77 basis points, a little better than last week’s 76-basis-point spread and a little worse the 78-basis-point spread a year ago.
Jumbo mortgage premiums were 57 BPS, slipping from 59 BPS in the prior report and 60 BPS a year prior.
Mortgage rates are poised to plummet around 17 BPS in the next Mortgage Market Index report based on a Mortgage Daily analysis of Treasury market activity.
The 10-year Treasury yield averaged 2.24 percent during the week that the data for the index was compiled, according to the Department of the Treasury. But, driven a disappointing employment report and a weak bond offering by Spain, the 10-year yield tumbled today to 2.07 percent — the lowest level in nearly a month.
