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Mortgage Market Index Down 3 Weeks in a Row

Mortgage Market Index Down 3 Weeks in a RowMortgage Market Index 273 for week ended Sept. 2

Sept. 2, 2011

By MortgageDaily.com staff

Falling mortgage rates were not enough to lure more prospective borrowers into the market this week as they were apparently preoccupied with the upcoming holiday weekend. Purchase business has fallen more than a quarter from a year ago.

The average loan originator pulled 12 percent fewer pricing inquiries this week than last week. It was the third consecutive week that new business was lower.

Compared to a year earlier, mortgage activity was down 22 percent.

Those were the finding from the U.S. Mortgage Market Index report from Mortech Inc. and Mortgage Daily for the week ended Sept. 2. The index, itself, was 273 this week.

Behind the disappointing performance were refinance inquiries, which fell 14 percent from last week. Refinance activity was down 19 percent from the week ended Sept. 1, 2010.

Refinance share was two thirds in the latest report, off from last week’s 68 percent but better than 64 percent during the same week last year. This week’s share reflected a rate-term share of 52 percent and a cashout share of 14 percent.

The week-over-week decline in purchase activity was more moderate at 8 percent. But purchases sank 26 percent from a year earlier.

Inquiries for mortgages insured by the Federal Housing Administration were off 10 percent for the week. FHA share, however, was higher at 9.63 percent this week versus 9.20 percent seven days ago.

Conventional business fell 12 percent from last week.

The share of this week’s activity that was for adjustable-rate mortgages was 7.10 percent, increasing from 6.82 percent in the previous report. But ARM activity was still down 10 percent.

The conforming, 30-year, fixed-rate mortgage eased a basis point from last week to 4.34 percent.

The jumbo 30-year mortgage was down 3 BPS, trimming the jumbo-conforming spread to 63 BPS from last week’s 65 BPS.

The spread between the conforming 15 year and the conforming 30 year widened to 86 BPS from 81 BPS, making the 15-year an even more attractive option.

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Full Mortgage Market Index Report




Week Ended Sept. 2, 2011



National Average Loan Amount
$215,837



Top 3 States state
$300,576 HI
$279,082 CA
$278,370 MA



Bottom 3 States state
$143,861 SD
$153,091 NE
$153,619 WV



National Average Rate-Term Refinance Amount
$231,840



Top 3 States state
$298,136 HI
$287,457 CA
$283,734 MA



Bottom 3 States state
$141,942 SD
$158,332 NE
$165,560 ND



National Average Cashout Refinance Amount
$207,339



Top 3 States state
$314,152 HI
$281,959 MD
$275,900 VT



Bottom 3 States state
$129,944 WV
$137,505 NE
$142,227 ID



National Average Jumbo Loan Amount
$641,172



Top 3 States state
$1,162,000 MI
$1,041,000 WY
$1,036,444 IN



Bottom 3 States state
$460,455 AK
$491,800 WV
$505,000 MS






National Rate-Term Refinance Share
52.18%



National Cashout Refinance Share
14.22%



National Cashout Refinance Share
66.40%



HOT PRODUCTS
Product state State Average
Conv30 MA $294,695
Conv30 MO $201,204
Conv30 CA $298,402
Conv15 MO $186,219
Conv15 MA $276,107
Conv30 TX $216,968
Conv30 IL $235,794
Conv20 MA $286,946
Conv30 NE $171,731
Conv30 NC $241,936
Conv30 PA $231,120
Conv15 TX $211,376
Conv15 NE $148,629
Conv30 NJ $278,169
Conv30 KS $198,318



Average rate for each product from All investors Product
4.335% Conv30
3.476% Conv15
3.117% 5-1LiborARM
4.074% FHA30
3.482% FHA15
4.116% VA30
4.966% Jumbo30



Mortgage Market Index
273



National ARM Share
7.100%



National FHA Share
9.630%



Mortgage Market Index 273 for week ended Sept. 2

 

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