Jumbo Rates Improve

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MORTGAGE EXPERT
6 · 24 · 11

As of Friday, mortgage rates fell — with the jumbo mortgage leading the way. But lower rates weren’t enough stimulate new mortgage activity.

The U.S. Mortgage Market Index from Mortech Inc. and MortgageDaily.com for the week ended June 24 came in at 223, retreating from 233 last week. The decline was even bigger when compared to the 274 index during the same week last year.

Adjustable-rate mortgage activity led the decline, falling 8 percent from the previous week. After that were purchase-mortgage inquiries, which fell 5 percent. Refinances were off 4 percent, as was conventional volume.

The share of borrowers who opted for an ARM inched down to 10.05 percent from the prior week’s 10.22 percent.

Refinance share was barely changed at 53 percent. Rate-term transactions represented 39 percent of the latest activity, and cashout share was 13 percent.

The across-the-board decline in prospective new business came despite a drop in mortgage rates.

The conforming 30-year mortgage fell to 4.666 percent from 4.682 percent last week. The 30-year was 4.652 a year prior.

But an even bigger decline was recorded for the jumbo 30-year mortgage, slashing the jumbo-conforming spread to 43 basis points from 50 BPS in last week’s report.

The spread between 15-year and 30-year mortgages edged up to 83 BPS from 82 BPS last week, making the 15-year slightly more attractive this week.

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Mortgage Daily Staff

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