Heading into Labor Day, new home-lending business turned mildly lower. That wasn’t the case, however, for adjustable-rate mortgage activity.
In the seven-day period that concluded on Friday,
the U.S. Mortgage Market Index from Mortgage Daily, — a barometer of upcoming originations — was 154.
Compared to one week earlier, the index — which is based on rate-lock volume
at OpenClose — retreated 4 percent. No seasonal adjustments are made to the index.
Hurricane Harvey likely had no role in the rate-lock decline and probably won’t be reflected for around a month a so. Business typically slows ahead of a holiday.
The MMI was down by a 10th from the same-seven days last year.
Rate locks for loans to finance a home purchase fell 5 percent from the week ended Aug. 25 — giving the Purchase MMI the largest week-over-week decline and leaving it at 98. Purchase business was mostly unchanged from a year ago.
A more than 4 percent week-over-week decline was recorded for government business. But the category has strengthened 19 percent from the week ended Sept. 2, 2016. Government share was trimmed to 38.5 percent from 38.6 percent but has widened from 29.1 percent this week in 2016. The latest share was made up of a 25.9 percent FHA share and a 12.6 percent VA share.
A nearly 4 percent decline from a week earlier left the Conventional MMI at 95. Conventional business has tumbled 22 percent from a year earlier.
Rate locks for refinances dropped 3 percent for the week and sank 23 percent versus the same week in 2016. Refinance share was more broad at 36.4 percent versus 35.9 percent a week prior. But the share was more narrow than 42.5 percent a year prior. This week’s share was comprised of an 18.2 percent rate-term share and an 18.1 percent cashout share.
Just a 1 percent week-over-week dip was tracked for jumbo rate locks. The year-over-year decline was 43 percent — more than any other category. Jumbo share widened to 6.9 percent from 6.7 percent but has been slashed from 10.9 percent this week in 2016. Jumbo rates were a basis point lower than conforming rates. The jumbo-conforming spread thinned from 6 BPS last week and 2 BPS this week last year.
ARMs were the only category to experience an increase from the previous report: 7 percent. ARM business has soared 45 percent from 12 months earlier. ARM share widened to 10.5 percent from 9.5 percent and was also fatter than 6.5 percent in the year-earlier report.
