Mortgage Daily

Published On: September 16, 2011
Refis Ups, Rates Down but Headed HigherMortgage Market Index 274 for week ended Sept. 16

Sept. 16, 2011

By staff

A four-week string of declines in new mortgage activity was broken this week, with refinances leading new business higher. Prospective borrowers responded to another round of lower rates, but it looks like rates could turn higher next week.

Mortgage originators pulled 9 percent more pricing inquiries this week than last week. That landed the U.S. Mortgage Market Index at 274 for the week ended Friday.

The index, from Mortech Inc. and Mortgage Daily, was 252 for the week ended Sept. 9 and 304 for the week ended Sept. 15, 2010.

Refinances led the week-over-week increase in overall activity, rising 9 percent. Refinance share inched up to 68 percent from 67 percent last week. The share was 61 percent during the same week last year.

This week’s refinance share reflected a 54 percent rate-term share and a 14 percent cashout share.

Purchase inquiries rose 7 percent for the week. Conventional volume was up 9 percent, and Federal Housing Administration inquiries were 8 percent better.

The share of this week’s business that was for adjustable-rate mortgages was 6.67 percent, not far from 6.71 percent last week. ARM inquiries were 6 percent higher over the past week.

Prospective borrowers responded to radically low rates, with the conforming 30-year fixed-rate mortgage averaging 4.23 percent this week versus 4.24 percent in the prior report. The 30-year was 4.38 percent at this point last year.

It looks like the 30-year will be worse in the next Mortgage Market Index report based on the 10-year Treasury yield. While the 30-year mortgage moved lower from last Friday, the yield on the 10-year Treasury moved 15 BPS higher to close today at 2.08 percent, according to the Department of the Treasury.

The spread between jumbo and conforming 30-year mortgages barely widened to 63 basis points from 62 BPS. But jumbos are priced much better than a year earlier, when the spread was 98 BPS.

The spread between 15-year and 30-year conforming mortgages was unchanged from last week at 81 BPS. Fifteen-year loans, however, weren’t priced so competitively one year ago, when the spread was 60 BPS.

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Full Mortgage Market Index Report

Week Ended Sept. 16, 2011

National Average Loan Amount

Top 3 States state
$299,031 DC
$285,268 HI
$281,614 MA

Bottom 3 States state
$144,509 ID
$153,233 SD
$155,530 AR

National Average Rate-Term Refinance Amount

Top 3 States state
$300,276 AK
$286,106 MA
$280,268 CA

Bottom 3 States state
$141,978 ID
$152,570 SD
$161,372 AR

National Average Cashout Refinance Amount

Top 3 States state
$335,271 DC
$291,143 HI
$264,512 MA

Bottom 3 States state
$143,555 NE
$144,167 AK
$144,790 WV

National Average Jumbo Loan Amount

Top 3 States state
$815,466 TN
$810,100 AL
$805,535 RI

Bottom 3 States state
$454,832 AK
$500,000 WV
$508,840 SD

National Rate-Term Refinance Share

National Cashout Refinance Share

National Cashout Refinance Share

Product state State Average
Conv30 MA $306,490
Conv30 MO $199,428
Conv30 CA $297,100
Conv15 MA $273,858
Conv15 MO $178,810
Conv20 MA $284,178
Conv30 IL $237,959
Conv30 NJ $287,397
Conv30 TX $212,382
Conv30 NE $174,653
Conv30 PA $239,476
Conv30 NC $246,984
Conv15 CA $283,790
Conv15 NE $148,120
Conv30 KS $186,813

Average rate for each product from All investors Product
4.227% Conv30
3.414% Conv15
3.075% 5-1LiborARM
3.957% FHA30
3.492% FHA15
3.982% VA30
4.858% Jumbo30

Mortgage Market Index

National ARM Share

National FHA Share

Mortgage Market Index 274 for week ended Sept. 16

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