While the holidays took an expected toll on new mortgage business, activity was stronger than a year ago. Government-insured business took the biggest week-over-week hit.
Tumbling 44 percent from a week earlier, the U.S. Mortgage Market Index from LoanSifter and Mortgage Daily was 95 for the week ended Dec. 27. The index reflects average pricing inquiries per LoanSifter user.
But when compared to Christmas week in 2012, activity was 29 percent higher. The year-earlier figures were revised to reflect numbers from the same data provider.
Out front of the holiday decline were pricing inquiries for Federal Housing Administration-insured loans, which sank 54 percent from the week ended Dec. 20. FHA business, however, was 53 percent better than the same week last year.
FHA inquiries accounted for just 15.1 percent of all activity, sinking from FHA share of 18.5 percent one week prior and 15.6 percent one year prior.
Refinancing activity dropped 45 percent and was down 12 percent from Christmas week 2012. Refinance share slipped to 48.5 percent from 49.1 percent and has narrowed significantly from 72.5 percent this week last year. This week’s share consisted of a 34.8 percent rate-term share and a 13.7 percent cashout share
Interest in purchase financing diminished, retreating 43 percent from the previous report. But purchase volume has soared 139 percent from the week ended Dec. 28, 2012.
Conventional activity fell 43 percent on a week-over-week basis but has strengthened 13 percent on a year-over-year basis.
Inquiries for adjustable-rate mortgages moved 16 percent lower from seven days earlier but have skyrocketed 391 percent from 12 months earlier.
ARMÂ share jumped to 16.7 percent from 11.2 percent in the last report. ARM share was only 2.9 percent as the same point in 2012.
The best performance was turned in by the jumbo category, which declined just 5 percent over the past week. Jumbo volume was 114 percent higher than the same week last year.
Jumbo share swelled up to 11.6 percent from 6.8 percent in the last report. Jumbo share was 4.1 percent a year ago.
Jumbo interest rates were priced 21 basis points higher than conforming rates. The jumbo-conforming spread was 22 BPS a week earlier and 43 BPS a year earlier.
Conforming 30-year fixed rates rose to 4.808 percent from 4.767 percent last week. A year ago, 30-year rates were only 3.592 percent.
The rate discount for 15-year mortgages inched up to 102 BPS from 99 BPS and was far better than 61 BPS in the year-earlier report.
It’s likely that 30-year fixed rates won’t be much different in next week’s report. An analysis of this week’s Treasury market activity indicates rates could be around 3 BPS higher.
The 10-year Treasury note yield averaged 2.99 percent this week, while it closed at 3.02 percent Friday, according to data reported by the Treasury Department.
