Mortgage Daily Logo

Purchase Financing Remains Strong

Mortgage News

While overall mortgage business has softened over the past year, purchase financing is up by more than half. Also continuing to show strength is adjustable-rate activity.

The U.S. Mortgage Market Index from LoanSifter and Mortgage Daily was 171 for the week ended Dec. 20, climbing 9 percent from the a week earlier. The index reflects average pricing inquiries per LoanSifter user.

But compared to a year previous, the index has tumbled 31 percent. The year-earlier numbers were revised to reflect statistics from the same data provider.

A portion of the data was mistakenly deleted from LoanSifter’s programming — impacting Mortgage Market Index reports from Nov. 22, 2013, through Dec. 6, 2013. In particular, the share of adjustable-rate mortgages, Federal Housing Administration-insured loans and jumbo mortgages were incorrect. The missing data was replaced in this week’s report.

A 39 percent increase from a year ago was recorded for ARM activity. ARM share was 11.2 percent in the latest report versus just 3.2 percent in the week ended Dec. 21, 2012.

Jumbo pricing inquiries were off 31 percent from the same week last year. Jumbo share climbed to 6.8 percent from only 4.2 percent 12 months prior.

Jumbo rates were 22 basis points higher than conforming rates. At the same point in 2012, the jumbo-conforming spread was 43 BPS.

Refinance activity rose 17 percent from the week ended Dec. 13 but was down 58 percent from a year ago. Refinance share increased to 49.1 percent from 45.7 percent but has plummeted from 75.4 percent a year earlier. The most recent share included a 33.6 percent rate-term share and a 15.5 percent cashout share.

Conventional volume jumped 14 percent from the last report but has diminished by 41 percent over the past year.

Purchase financing picked up, with pricing inquiries increasing 2 percent from last week. Purchase business has soared 53 percent from a year prior.

FHA activity was down 8 percent from a year ago even though FHA share has risen to 18.4 percent from 16.7 percent during the same period.

Conventional 30-year fixed rates averaged 4.767 percent, easing from 4.891 percent seven days earlier but increasing from 3.629 percent 12 months earlier.

Average 15-year fixed rates were 99 BPS lower than 30-year rates. The spread narrowed from 116 BPS in the prior report but widened from 64 BPS in the year-earlier report.

During the period covered by the latest report, the yield on the 10-year Treasury note averaged 2.89 percent, according to Treasury Department data. The 10-year yield closed at 2.89 percent Friday, suggesting that mortgage rates will be little changed in the next Mortgage Market Index report.

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