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Mortgage Activity Continues Decline

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

Aug. 26, 2011

By MortgageDaily.com 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.

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Full Mortgage Market Index Report




Week Ended Aug. 26, 2011



National Average Loan Amount
$216,802



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
$230,882



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
$211,241



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
$650,605



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
53.740%



National Cashout Refinance Share
13.970%



National Total Refinance Share
67.710%



HOT PRODUCTS
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
311



National ARM Share
6.820%



National FHA Share
9.200%



Mortgage Market Index 311 for week ended Aug. 26

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