New mortgage business rebounded following Independence Day, and it was inquiries for adjustable-rate mortgages and refinances that had the biggest bounce.
At 165, the U.S. Mortgage Market Index from LoanSifter/Optimal Blue and Mortgage Daily for the week ended July 11 climbed 20 percent from the previous week.
But the index, which reflects average per-user pricing inquiries for clients of LoanSifter, was off 23 percent compared to the same week last year.
Leading activity higher were ARM inquiries, which jumped one-quarter compared to the week ended July 4. ARM activity, however, has subsided 13 percent versus a year earlier. Out of all inquiries pulled, ARMs accounted for 10.9 percent. ARM share widened from 10.6 percent in the prior report and 9.6 percent in the year-earlier report.
Refinance business climbed 23 percent over the previous seven days but was down 30 percent from the week ended July 12, 2013.
Refinance share crept up to 46.3 percent from 45.2 percent but has thinned from 50.3 percent one year prior. The most recent refinance share was comprised of a 30.8 percent rate-term share and a 15.5 percent cashout share.
A 21 percent week-over-week gain was clocked for conventional loan inquiries, while the category was down 30 percent on a year-over-year basis.
After that were inquiries for loans insured by the Federal Housing Administration, which rose 20.3 percent for the week but were off by nearly a quarter from the same week last year. FHA share was slightly wider at 16.1 percent versus 16.0 percent in the last report but was little changed from the same week in 2013.
Close behind were inquiries for jumbo mortgages — rising 20.2 percent from seven days prior and 14 percent from a year prior. Jumbo mortgage share was unchanged at 9.9 percent but fatter than 6.7 percent one year earlier.
Interest rates on jumbo mortgages were 8 basis points better than on conforming loans, the same as last week’s jumbo-conforming spread. The spread swung from a positive 30 BPS a year prior.
The smallest gain from the previous report was turned in by the purchase financing category, which rose 18 percent. Purchase activity, however, has slowed 17 percent compared to 12 months earlier.
Conventional 30-year fixed rates averaged 4.524 percent, rising from 4.496 percent in the last report but lower than 4.743 percent a year ago.
Fixed rates could be around 4 BPS better in the next report based on Treasury market activity. The 10-year Treasury yield averaged 2.57 percent during the week encompassed by the latest Mortgage Market Index report, based on Treasury Department data, while it closed Friday at 2.53 percent.
