Mortgage Daily Logo

New Mortgage Business Slips as Rates Inch Up

Mortgage News

As mortgage rates crept higher, new mortgage activity drifted lower this week — with refinances leading the decline. Adjustable-rate activity, however, improved.

At 178 for the week ended Oct. 11, the U.S. Mortgage Market Index from LoanSifter and Mortgage Daily was down 3 percent from last week. The index has fallen 36 percent from the same week last year.

This week’s biggest loss was suffered by pricing inquiries for refinances, which dropped 4 percent from the week ended Oct. 4. Refinance activity is off by 58 percent from a year ago — the worst year-over-year decline of any category.

Year-earlier data were revised to reflect the same data provider.

A little less than 51 percent of business was for refinances versus a refinance share of a little more than 51 percent a week earlier. Refinance share sank from the same week in 2012, when it stood at 78.0 percent. This week’s share consisted of a 36.2 percent rate-term share and a 14.7 percent cashout share.

The next worst performer was the jumbo category, with jumbo inquiries falling more than 2 percent. But jumbo activity was up 21 percent compared to the week ended Oct. 12, 2012. Jumbo share rose to 7.6 percent from just under 7.6 percent and was wider than 4.0 percent 12 months prior.

Jumbo mortgages were priced at a 31-basis-point premium over conforming loans, the same as seven days earlier but much more narrow than 51 BPS in the same week last year.

Inquiries for purchase financing were off less than 2 percent for the week but 42 percent better on a year-over-year basis.

Also slipping less than 2 percent were inquiries for conventional loans, though conventional business has fallen 41 percent over the past 12 months.

A 1 percent decline from the last report was recorded for loans insured by the Federal Housing Administration. FHA business was off 36 percent from a year earlier. FHA share inched up to 15.4 percent from 15.2 percent and was barely changed on a year-over-year basis.

Nudging new business down were mortgage rates. Conforming 30-year fixed rates averaged 4.523 percent, edging up from 4.503 in the prior report. Thirty-year rates were much worse than 3.593 percent in the same week last year.

The rate discount for a 15-year mortgage was 90 BPS, roughly the same as last week but much better than 60 BPS 12 months ago.

Treasury market activity suggests that rates could be similar in the next Mortgage Market Index report. The yield on the 10-year Treasury note averaged 2.68 percent in the week covered by the Mortgage Market Index, while the 10-year yield closed at 2.70 percent Friday, according to Treasury Department data.

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

The Mortgage Graveyard 2018 Archives

The Mortgage Graveyard 2018 Archives Failed, Struggling and Acquired Mortgage-Related Companies Non-Bank Closures 3 Bank Failures (FDIC) 0 Credit Union Failures 0 Total Mortgage-Related Failures 3  

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

Sample E-Mail

Sample E-Mail   Covering the Real Estate Finance Since 1999  Mortgage Industry News free news content | view headlines online  Advertorial Text Ad This ad includes a linked bold headline of up to 50 characters and up to 100 words of text. The ad can be...

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

Mortgage Servicer Portfolios

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...

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

calculate your monthly mortgage payment

Related Topics

Helpful Links

Daily mortgage rate trends

Best mortgage lenders

First-time homebuyers programs by state

Loan limits by state

Types of mortgages

APR vs interest rate

Understanding PMI