Mortgage Daily Logo

Mortgage Activity Climbs Despite Rising Rates

Mortgage News

New mortgage business was better for a second consecutive week. Although jumbo mortgages were priced worse relative to their conforming counterparts, the category was one of the strongest during the latest week. As mortgage rates moved higher, shorter term loans became more attractive and adjustable-rate activity jumped by more than a quarter.

An 11 percent rise from last week left the U.S. Mortgage Market Index from Optimal Blue and Mortgage Daily for the week ended Jan. 11 at 166. The index has increased 13 percent from the revised level during same week in 2012.

The average number of rate locks pulled per loan originator client of Optimal Blue for adjustable-rate mortgages was up 28 percent from the week ended Jan. 4, stronger than any other category. ARM activity, however, has fallen 46 percent over the past 12 months using revised year-earlier data.

ARM share crept up to 3.4 percent from the prior week’s 3.0 percent. Still, ARM share sits at half the revised level it was at in the week ended Jan. 13, 2012.

A 22 percent week-over-week jump in jumbo rate locks made it the second-best performing category. Jumbo business was up just 6 percent, however, from the revised level a year earlier. Jumbo share inched up to 7.1 percent from the previous week’s 6.5 percent but was off from 7.7 percent in the same week a year earlier.

The gain in jumbo activity came despite deterioration in the premium for a jumbo loan; the jumbo-conforming spread widened to 33 basis points from 31 BPS seven days earlier. But the rate premium for a jumbo mortgage has settled back significantly from a revised 55 BPS in the same week in 2012.

Close behind were mortgages insured by the Federal Housing Administration, which increased 21 percent over the prior week and were up 30 percent from the same week in the prior year. FHA share widened to 19 percent from 18 percent a week earlier and a revised 17 percent a year earlier.

Although the rise in purchase financing activity was nowhere near as robust as it was for ARMs, FHA loans or jumbo mortgages — purchase rate locks were still up 12 percent for the week and 41 percent better than the revised level on a year-over-year basis.

Also lagging the leading categories were rate locks for refinance transactions, which increased 10 percent from the previous week. Refinance business has slowed 3 percent from the same week last year.

Almost 53 percent of the latest activity was refinance, off from more than 53 percent in the prior report and lower than 62 percent in the year-earlier period. The most recent total refinance share consisted of a 42 percent rate-term share and an 11 percent cashout share.

The most lackluster week-over-week performance was with conventional loans, with rate locks up just 9 percent from the previous report. Conventional rate locks have expanded 10 percent for the year using revised data.

Mortgage rates climbed higher over the prior week, with the 30-year, fixed-rate, conventional mortgage averaging 3.742 percent versus 3.672 percent the prior week. The 30 year has declined from a revised 4.192 percent 12 months prior.

Fifteen-year rate locks averaged 78 BPS better than on 30-year loans. The spread improved from 74 BPS a week earlier and 70 BPS a year earlier.

Related Posts

NewDay USA CEO Rob Posner Expects 10% Increase in 2019 Mortgage Loan Volume

There is No Such Thing as a Free House …

Over the past several years, those who service loans in the State of Washington(1) have seen a dramatic rise in the number of lawsuits in which delinquent borrowers seek to quiet title to their homes on the grounds that lenders are barred from foreclosing based on...

NewDay USA CEO Rob Posner Expects 10% Increase in 2019 Mortgage Loan Volume

Mortgage Servicer Portfolios

servicing news | mortgages outstanding statistics | foreclosure news   Servicing Portfolios as of 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 | 2010 | 2009 | 2008 | 2007 | 2006 Residential Servicing Portfolios by Servicer Last Updated December 14, 2018...

NewDay USA CEO Rob Posner Expects 10% Increase in 2019 Mortgage Loan Volume

Fannie Mae Profile

Last Updated December 27, 2018 7:38 PM Central   full list | other directories | bank search | SEC filings | execs | m&a | production   Government Takes Over Fannie, Freddie Sept. 8, 2008 The government has seized control of Fannie Mae and Freddie Mac. The move --...

NewDay USA CEO Rob Posner Expects 10% Increase in 2019 Mortgage Loan Volume

Freddie Mac Profile

Government Takes Over Fannie, Freddie Sept. 8, 2008 The government has seized control of Fannie Mae and Freddie Mac. The move -- which is likely to push mortgage rates lower and provide a sense of stability for the more than 10,000 employees at both companies -- is a...

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 home closing documents have 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...

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 mortgage...

Newsletter

Don’t worry, we don’t spam