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Purchase Financing Down 19% Past 12 Months

Purchase Financing Down 19% Past 12 MonthsMortgage Market Index 252 for week ended Sept. 9

Sept. 9, 2011

By staff

Compared to last year, purchase activity has tumbled and refinances have strengthened. Both metrics deteriorated from last Friday, and overall activity was off for the fourth week in a row.

The U.S. Mortgage Market Index was 252 this week. The measure was weaker than 273 in the week ended last Friday.

The index is based on the average number of pricing inquiries pulled by clients of Mortech Inc., which sponsors the report along with Mortgage Daily.

The slide from last week was led by declining purchase transactions, which fell 10 percent from the previous week.

Refinances were down 7 percent, but the refinance share crept up to 67 percent from two-thirds last week. Rate-term share fattened to 54 percent from 52 percent in the prior report, and cashout share was cut to 13 percent from 14 percent.

Adjustable-rate mortgage activity was down 11 percent. ARM share wasn’t much changed from the last report at 6.71 percent.

Conventional loans and loans insured by the Federal Housing Administration each saw an 8 percent week-over-week decline, while the drop inched down to 7 percent for refinances.

There hasn’t been much change in the Mortgage Market Index since the week ended Sept. 8, 2010, when the index stood at 259.

But when you drill down to purchases, activity has fallen nearly a fifth. At the same time, refinance transactions have climbed 8 percent since this point last year.

While the Labor Day holiday took its toll on new business, the conforming 30-year fixed-rate mortgage improved 10 BPS from last week to 4.24 percent.

The jumbo-conforming spread thinned slightly to 62 BPS from 63 BPS, making the premium for larger loans less expensive.

The spread between the conforming 15- and 30-year loans fell to 81 BPS from last Friday’s 86 BPS. The smaller spread provides prospective borrowers with less incentive to choose a 15 year mortgage.

Compared to the close of the market last Friday, the yield on the 10-year Treasury was down 9 BPS to 1.93 percent today, Treasury Department data indicate. Given the 10-basis-point decline in mortgage rates during the same period, rates look likely to come in next week not much different than this week’s levels.

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Full Mortgage Market Index Report

Week Ended Sept. 9, 2011

National Average Loan Amount

Top 3 States state
$300,249 HI
$284,306 MA
$280,922 CA

Bottom 3 States state
$156,464 ID
$157,321 NE
$159,255 AR

National Average Rate-Term Refinance Amount

Top 3 States state
$294,920 HI
$289,599 MA
$289,591 CA

Bottom 3 States state
$146,631 ID
$158,633 NE
$166,143 WY

National Average Cashout Refinance Amount

Top 3 States state
$348,950 HI
$280,399 DC
$279,300 CA

Bottom 3 States state
$128,165 SD
$133,485 MI
$144,893 OK

National Average Jumbo Loan Amount

Top 3 States state
$945,122 ME
$912,069 SC
$896,001 FL

Bottom 3 States state
$481,778 WV
$508,000 AK
$523,246 AL

National Rate-Term Refinance Share

National Cashout Refinance Share

National Total Refinance Share

Product state State Average
Conv30 MA $303,687
Conv30 MO $205,130
Conv15 MA $282,497
Conv30 CA $305,675
Conv15 MO $195,163
Conv30 IL $250,494
Conv30 TX $227,246
Conv20 MA $286,266
Conv30 NJ $292,499
Conv30 KS $203,956
Conv30 NE $171,007
Conv30 NC $248,572
Conv15 NE $153,123
Conv30 PA $239,040
Conv15 TX $207,627

Average rate for each product from All investors Product
4.237% Conv30
3.424% Conv15
3.067% 5-1LiborARM
3.982% FHA30
3.474% FHA15
3.981% VA30
4.860% Jumbo30

Mortgage Market Index

National ARM Share

National FHA Share

ortgage Market Index 252 for week ended Sept. 9

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