Mortgage Daily Logo

New Mortgage Activity Drops

Mortgage News

As the government shutdown took effect, new mortgage activity turned lower despite an improvement in interest rates. Jumbo and adjustable-rate mortgages took the biggest hits.

New activity fell 8 percent from last week, leaving the U.S. Mortgage Market Index from LoanSifter and Mortgage Daily for the week ended Oct. 4 at 183. The index reflects the average number of pricing inquiries pulled per LoanSifter user.

Compared to the same week in 2012, business was down 40 percent. Year-earlier figures were revised to reflect data from the same provider.

The biggest decline was with jumbo mortgages, with inquiries down 16 percent from the week ended Sept. 27. Still, jumbo business was up 13 percent from a year earlier.

Jumbo inquiries accounted for 7.6 percent of overall activity, down from 8.3 percent in the previous report. Jumbo share has widened, however, from 4.1 percent a year earlier.

The jumbo-conforming spread was mostly unchanged from the prior week at 31 basis points but has improved significantly from 50 BPS during the same week in the prior year.

Adjustable-rate mortgages did nearly as badly as jumbo loans, with inquiries down 15 percent for the week. But, as was the case with jumbo loans, ARM activity was up from a the week ended Oct. 5, 2012, by 58 percent — more than any other category.

ARM share fell to 9.8 percent from 10.6 percent but was much higher than 3.7 percent in the same week last year.

After that was conventional business, which fell 8 percent and has tumbled 45 percent on a year-over-year basis.

Next, was the refinance category, which fell 7 percent from last week. Refinances have plummeted 60 percent from a year ago — the worst performance of any category compared to a year earlier.

Refinance share, however, was up — to 51.3 percent from 50.7 percent. But refinance share has tumbled from 78.5 percent at the same point in 2012. The most recent refinance share included a 37.6 percent rate-term share and a 13.7 percent cashout share.

The week’s smallest decline was with inquiries for loans insured by the Federal Housing Administration. Inquiries were down 5 percent from a week earlier and 42 percent from a year earlier. FHA share rose to 15.2 percent from 14.7 percent but was more narrow than 15.8 percent 12 months earlier.

Conforming 30-year fixed-rate mortgages averaged 4.503 percent, improving from 4.577 percent in the last report but much worse than 3.553 percent in the same report last year.

Fifteen-year mortgages were priced 90 basis points better than 30-year loans, not as good as the 92-basis-point discount in the previous report but far better than the 58-basis-point spread one year prior.

Not much difference in mortgage rates can be expected in next week’s report based Mortgage Daily’s analysis of weekly Treasury market activity. The yield on the 10-year Treasury note averaged 2.64 percent in the week covered by the Mortgage Market Index, while the 10-year yield closed at 2.66 percent Friday, according to the Treasury Department.

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