Mortgage Daily Logo
mortgage news from industry experts

FHA Business Leads Drop in Mortgage Activity

An improvement in interest rates was overcome by the holiday effect, and new mortgage business slowed. Government-insured activity tumbled the most.

A 9 percent decline from seven days earlier left the U.S. Mortgage Market Index from LoanSifter/Optimal Blue and Mortgage Daily for the week ended Aug. 29 at 157.

Activity was also down from the same week in 2013, with LoanSifter users pulling an average of 17 percent fewer inquiries in the latest report versus a year earlier.

An 11 percent decline from the week ended Aug. 22 hit inquiries for mortgages insured by the Federal Housing Administration. FHA business has retreated 20 percent compared to the same week last year.

FHA share fell to 15.5 percent from 15.9 percent in the previous report and 16.1 percent in the year-earlier report.

A nearly 9 percent decline hit purchase financing inquiries, while a 19 percent decline was recorded compared to the week ended Aug. 30, 2013.

Refinance business was off more than 8 percent for the week and 15 percent from one year prior.

Refinance share inched up just past 49.0 percent from just under 49.0 percent in the previous report. It was slightly wider than 47.9 percent in the year-earlier report. The newest refinance share was comprised of a 33.1 percent rate-term share and a 15.9 percent cashout share.

Inquiries for conventional mortgages dropped 7 percent and have diminished by nearly a quarter on a year-over-year basis.

Jumbo activity slid 5 percent but remained 26 percent stronger than in the same week last year. Jumbo share climbed to 11.2 percent from 10.7 percent and was significantly wider than 7.4 percent 12 months prior.

Jumbo rates were 5 basis points better than conforming rates, swinging from a positive 2-basis-point spread in the previous report and a positive 26-basis-point spread in the year-earlier report.

The smallest loss for the week was with inquiries for adjustable-rate mortgages, which were 4 percent fewer than in the previous report and in the year-previous report.

Conforming 30-year fixed rates averaged 4.474 percent, slipping 2 BPS from seven days earlier and 29 BPS better than 12 months earlier.

Fifteen-year mortgages were priced 96 BPS lower than 30-year loans, the same spread as in the previous week’s report. The spread was 94 BPS one year prior.

Mortgage rates aren’t likely to be much different in the next Mortgage Market Index report based on the week’s Treasury market activity.

During the period represented in the report, the 10-year Treasury yield averaged 2.37 percent, based on data reported by the Treasury Department. The 10-year yield closed at 2.35 percent Friday.

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