A few more people were out shopping for a home loan this past week, with home purchase financing inquiries putting in the strongest week-over-week performance. Already-low rates are poised to fall a little further.
A 2 percent rise from last week left the U.S. Mortgage Market Index from Mortech Inc. and Mortgage Daily for the week ended May 4 at 207. The index was 227 in the report for the week ended May 6, 2011.
Inquiries for home-purchase financing were up 3 percent. But purchase volume is off by more than a third from the same week last year.
Conventional, Federal Housing Administration and adjustable-rate mortgage inquiries were each up 2 percent from last week. All were down from the year-earlier period.
ARM share was 4.83 percent, up from 4.82 percent in the prior report. ARM share was 10.45 percent a year ago.
FHA share was barely lower than last week at 11.1 percent but was off from 14.7 percent this week in 2011.
Refinance activity was up 1 percent for the week and 23 percent stronger than last year at this time. Refinance share edged down to 63 percent from 64 percent but stood significantly higher than 47 percent one year earlier. This week’s refinance share reflected a 50 percent rate-term share and a 13 percent cashout share.
Jumbo loan activity was off 1 percent for the week. The premium for a jumbo mortgage was 53 basis points this week, the same as last week and this week last year.
Inquiries for 15-year mortgages were discounted 78 BPS compared to 30-year loans, just like last week. The 15-year benefit has diminished a little from 80 BPS in the year-earlier week.
Treasury market data from the Department of the Treasury indicate mortgage rates could be around 5 BPSÂ better in the next Mortgage Market Index report. During the week of the latest report, the 10-year Treasury yield averaged 1.96 percent, while the yield closed Friday at 1.91 percent.
