Prompted by declining rates — refinances and adjustable-rate mortgages led an increase in weekly mortgage activity. Purchase financing, however, didn’t fare quite so well.
A 3 percent increase over the prior week left the U.S. Mortgage Market Index from LoanSifter/Optimal Blue and Mortgage Daily for the week ended Aug. 8 at 174.
Compared to a year earlier, the index — which is based on average per-user product-and-pricing inquiries by LoanSifter clients — was down 9 percent.
Lifting overall activity were inquiries for refinances, which climbed more than 8 percent from the week ended Aug. 1. Refinances, however, were down 11 percent from the same week in 2013.
Refinances accounted for 47.9 percent of all inquiries. Refinance share rose from 45.8 percent in the previous report but was off from 49.0 percent in the year-earlier report. The latest share was comprised of a 31.9 percent rate-term share and a 16.0 percent cashout share.
ARMÂ inquiries were up nearly 8 percent for the week and 2 percent higher than the week ended Aug. 9, 2013. ARM share rose to 11.4 percent from 10.9 percent a week earlier and 10.1 percent a year earlier.
Jumbo business climbed 6 percent compared to the previous report and has jumped 12 percent from the same week in the previous year. Jumbo share widened to 10.2 percent from 10.0 percent. One year ago, the share was 12.2 percent.
Interest rates on jumbo mortgages were 9 basis points better than on conforming loans. The jumbo-conforming spread narrowed from a negative 11 BPS in the previous report and swung from a positive 29 BPSÂ in the year-earlier report.
A 4 percent increase was recorded for conventional activity, though conventional inquiries have descended 17 percent from 12 months prior.
Inquiries for Federal Housing Administration-insured loans slipped less than a percent and were off 8 percent from a year earlier. FHA share, meanwhile, fell to 15.5 percent from 16.1 percent but edged up over the 15.3 percent share in the same week last year.
Purchase business was off nearly a percent and was 7 percent lower on a year-over-year basis.
Thirty-year fixed rates averaged 4.512 percent, inching down from 4.527 percent in the last report. Thirty-year rates were 4.926 percent a year previous.
The 96-basis-point discount for 15-year mortgages was about the same as seven days earlier. But the spread expanded from 90 BPS 12 months previous.
Mortgage rates are poised to be around 3 BPS better in the next Mortgage Market Index report, according to an analysis of Treasury market activity.
The 10-year Treasury note yield averaged 2.47 percent during the week covered in the latest report based on data from the Department of the Treasury. The 10-year yield closed Friday at 2.44 percent.
