Mortgage Daily Logo
mortgage news from industry experts

Mortgage Activity Continues Decline

Mortgage Activity Continues DeclineMortgage Market Index 311 for week ended Aug. 26

Aug. 26, 2011

By staff

It was the second consecutive week that new mortgage activity was lower. Refinance business tumbled nearly a quarter as rates were higher.

Mortgage inquiries for the week ended Aug. 26 were down 19 percent from last Friday.

It was the second week in a row that business declined.

The findings were outlined in the U.S. Mortgage Market Index report from Mortech Inc. and Mortgage Daily.

Compared to the same week in 2010, pricing inquiries were off 12 percent.

But at 311 this week, the Mortgage Market Index still sits well above the 2011 low of 162 reached last month.

Leading the week-over-week dropoff were refinances — which tumbled 23 percent. Compared to a year earlier, refinances were off just 7 percent.

Refinance share in today’s report was 68 percent, down from 71 percent seven days prior. The share stood at 64 percent a year prior.

This week’s refinance activity reflected a rate-term share of 54 percent and a cashout share of 68 percent.

On the purchase side, 9 percent fewer inquiries were made this week than last week. Purchase activity has plummeted 22 percent over the past 12 months.

Conventional inquiries fell 19 percent from the week ended Aug. 19, and FHA share was off 12 percent. FHA inquiries accounted for 9.20 percent of this week’s business.

Adjustable-rate mortgage activity fell 16 percent this week. The ARM share, however, climbed to 6.82 percent from 6.63 percent.

Business deteriorated as the conforming 30-year mortgage climbed to 4.35 percent from last week’s 4.25 percent. The 30 year was up 3 basis points from the week ended Aug. 25, 2010.

The spread between the jumbo 30 year and the conforming 30 year was unchanged from last week at 65 BPS. But the spread was much more narrow than the 88 BPS a year ago — indicating a big improvement in jumbo pricing over the past year.

The 15-year became slightly more attractive at 81 BPS better than the 30 year versus last week’s spread of 80 BPS.

Since last Friday, the yield on the 10-year Treasury has climbed 12 BPS to close today at 2.19 percent, according to data reported by the Department of the Treasury. The 10-year movement points to no changes for mortgage rates in next week’s report.

next story

back to current headlines

Full Mortgage Market Index Report

Week Ended Aug. 26, 2011

National Average Loan Amount

Top 3 States state
$278,840 AK
$277,173 HI
$276,808 MA

Bottom 3 States state
$154,086 SD
$154,893 NE
$160,148 KY

National Average Rate-Term Refinance Amount

Top 3 States state
$290,196 DC
$282,934 CA
$282,382 CT

Bottom 3 States state
$154,275 SD
$156,813 NE
$168,191 KY

National Average Cashout Refinance Amount

Top 3 States state
$286,055 HI
$271,431 WY
$269,726 CA

Bottom 3 States state
$124,083 ND
$144,930 ID
$146,554 NE

National Average Jumbo Loan Amount

Top 3 States state
$967,792 NV
$870,074 NC
$863,675 OR

Bottom 3 States state
$507,443 AL
$524,190 WV
$530,000 ID

National Rate-Term Refinance Share

National Cashout Refinance Share

National Total Refinance Share

Product state State Average
Conv30 MA $297,479
Conv30 MO $202,163
Conv30 CA $298,062
Conv15 MA $273,327
Conv15 MO $186,121
Conv30 IL $237,479
Conv30 TX $215,088
Conv20 MA $282,468
Conv30 KS $205,922
Conv30 NE $172,466
Conv30 NJ $286,109
Conv15 NE $152,157
Conv15 TX $203,156
Conv30 PA $229,557
Conv30 AR $188,681

Average rate for each product from All investors Product
4.351% Conv30
3.537% Conv15
3.229% 5-1LiborARM
4.112% FHA30
3.550% FHA15
4.151% VA30
5.002% Jumbo30

Mortgage Market Index

National ARM Share

National FHA Share

Mortgage Market Index 311 for week ended Aug. 26

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...


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

Related Posts