Mortgage Daily Logo

Mortgage Activity Drops Despite Descending Rates

Mortgage News

Already low interest rates found room to fall further this week, but the decline wasn’t enough to overcome a holiday week slump that had new business slower. Leading overall activity down this week was financing for home purchases.

A 13 percent decline from last week left the U.S. Mortgage Market Index from Mortech Inc. and Mortgage Daily at 198 for the week ended Nov. 16 — a week that included Columbus Day. The index stands 18 percent lower than it did during this week last year.

Purchase financing took the biggest hit, falling 15 percent from the week ended Nov. 9. Purchase business has tumbled 47 percent from the same week in 2011.

Inquiries for conventional mortgages were down 13 percent from the previous report and have eroded 17 percent over the past year.

A more than 12 percent week-over-week decline hit inquiries for adjustable-rate mortgages, while ARM activity was off more than two thirds from the week ended Nov. 18, 2011. ARM share was unchanged from last week at 2.3 percent but narrowed from 5.9 percent a year ago.

Refinance inquiries were down almost 12 percent from last week. Refinances were off just 3 percent from the same week a year earlier. Refinance share widened to 76.8 percent from 76.2 percent the prior week and has grown from 64.5 percent 12 months earlier. This week’s refinance share reflected a 62.0 percent rate-term share and a 14.8 percent cashout share.

Inquiries for jumbo mortgages were off less than 12 percent for the week even as jumbo share grew to 8.2 percent from 8.1 percent. Pricing on jumbo mortgages was 55 basis points higher than conforming pricing. Last week, the jumbo-conforming spread was 58 BPS.

Fifteen-year mortgages were discounted by 63 BPS from 30-year loans, not as good as the 67-basis-point discount in the prior report. A year ago, 15-year mortgages were priced 65 BPS less than 30-year loans.

Price quotes on 30-year fixed-rate mortgages averaged 3.491 percent, lower than 3.515 percent in the previous report but not quite as good as the record-low 3.411 percent recorded for the week ended Sept. 28, 2012. During this week last year, the 30 year averaged 4.229 percent.

Not much difference can be expected for mortgage rates in the next Mortgage Market Index report based on a Mortgage Daily analysis of Treasury market activity this week. During the week covered in the Mortgage Market Index report, the 10-year Treasury yield averaged 1.59 percent, while it closed at 1.58 percent on Friday, according to data delivered by the Department of the Treasury.

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

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