Mortgage Daily Logo

Holiday Hangover Hampers New Business

Mortgage News

Business picked up from the Christmas week but was still anemic. Refinance and adjustable-rate loan inquiries turned in the strongest week-over-week performance, while purchase financing continues to sag compared to a year ago.

At 183, the U.S. Mortgage Market Index from Mortech Inc. and Mortgage Daily for the week ended Friday was 40 percent higher than in the previous report. The index, however, slipped 1 percent from the same week in 2011.

Refinance business was 41 percent higher than last week and 37 percent better than a year ago. Total refinance share was 67 percent, about the same as last week but fatter than 51 percent in the week ended Jan. 5, 2011. This week’s share reflected a rate-term share of 54 percent and a cashout share of 14 percent.

Also up 41 percent from last week were inquiries for adjustable-rate mortgages. ARM share inched up to 5.12 percent from 5.06 percent in the previous report.

Inquiries for mortgages insured by the Federal Housing Administration were up 35 percent from last week and accounted for 11.22 percent of all inquiries. Conventional inquiries were 40 percent higher.

The average loan size in this week’s report was $224,267, jumping from the previous week’s $194,385.

Conforming 30-year rates slipped to 4.05 percent from 4.09 percent and were 82 basis points better than this week last year.

Jumbo borrowers, those whose loans exceed $417,000, paid a 75-basis-point premium over conforming borrowers, improving from the 80-basis-point spread a week earlier. The jumbo-conforming spread was 86 BPS a year earlier.

Borrowers inquiring about a 15-year loan were quoted a rate that was 67 BPS better than 30-year borrowers, a little better discount than 66 BPS last week and 70 BPS at this point in 2011.

Mortgage rates are unlikely to be much different in next Friday’s report based on an analysis of Treasury market activity. The yield on the 10-year Treasury note averaged 1.99 percent this week, while the yield closed today at 1.98 percent, according to data released by the Department of the Treasury.

Related Posts

Centex Home Equity Announces Name and Brand Change to National Mortgage, LLC

Third-Quarter 2012 Mortgage Litigation Index

Lawsuits involving excessive fees, servicing fees and loan fees beyond state maximums. Defendant Plaintiff Court Amount Overview Case Title Case Number Date Filed Date of Activity Link to Story Fannie Mae and Freddie Mac Orangeburg County, Richland County, South...

Centex Home Equity Announces Name and Brand Change to National Mortgage, LLC

Net Branch Lawsuits

Litigation involving net branch operations. Defendant Plaintiff Court Amount Overview Case Title Case Number Date Filed Date of Activity Link to Story PHH Mortgage Corp. Mathews Supreme Court of Virginia na Court held that the term "branch office" includes not only...

Centex Home Equity Announces Name and Brand Change to National Mortgage, LLC

Whistleblower Lawsuits

Litigation related to loan servicing, including escrow issues, transfer of servicing and servicing borrowers in bankruptcy and foreclosure.   Defendant Plaintiff Court Amount Overview Case Title Case Number Date Filed Date of Activity Link to Story Bank of...

Popular posts

How Long Does It Take to Refinance a Mortgage
How Long Does It Take to Refinance a Mortgage

So, you’re interested in refinancing your mortgage. Maybe you want some extra capital to do that home project you’ve always dreamed of, interest rates are nearing record lows, or you want to start consolidating debt. Regardless of the motivation behind the refinance,...

How Does Refinancing a Mortgage Work
How Does Refinancing a Mortgage Work

A home purchase is considered an investment, and a robust one at that. Savvy owners are constantly looking for new ways to reduce debt, save money, pay less in interest, and ultimately build equity. Refinancing is one way to leverage your investment and do just that....

What Does It Mean to Refinance Your Home
What Does It Mean to Refinance Your Home

You can think of refinancing your mortgage as a debt redo. Essentially, you’ll swap out the existing loan for a new one - ideally with better terms and conditions. Only this time it could help you save money on high mortgage payments, rather than just borrow it....

Setting up the Utilities in My New House
Setting up the Utilities in My New House

All the tedious, time-consuming paperwork has been signed, sealed, and delivered. Your belongings are packed into what seems like a million boxes and you have a solid plan to haul all your existing furniture to the new place. Just as your boxes and furniture need to...

When Is My First Mortgage Payment Due?
When Is My First Mortgage Payment Due?

Navigating your way through a brand-new mortgage loan can be a difficult task, especially for first-time homeowners.   After handing over a large sum of money for the down payment and closing costs, it’s important to pay attention to the timing of your first...

Newsletter

Don’t worry, we don’t spam