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Refinances Spike, Purchases Rise

Refinances Spike, Purchases RiseMortgage Market Index 374 for week ended Sept. 23

Sept. 23, 2011

By staff

For the week ended Friday, Sept. 23, inquiries for refinances shot up 43 percent. Even purchase activity was stronger, though not as strong as a year ago. Fueling the frenzy were more interest-rate declines.

Overall new inquiries this past week were 36 percent higher than the week ended last Friday.

That left the U.S. Mortgage Market Index at 374 for the week ended Sept. 23.

The index, which is sponsored by Mortech Inc. and Mortgage Daily, was up more than a quarter from the same week during 2010.

Driving this week’s strong activity were refinance transactions, which jumped 43 percent from last week. Refinances rose by nearly half from a year earlier.

Refinance share this week was 71 percent, rising from 68 percent last week and 60 percent at the point in 2010. The latest share reflected a 58 percent rate-term share and a 13 percent cashout share.

Purchase inquiries climbed 22 percent for the week but were off 7 percent from 12 months prior.

The share of activity tied to adjustable-rate mortgages fell to 5.65 percent from last week’s 6.67 percent. But ARM inquiries still managed to ascend 17 percent.

Inquiries for mortgages insured by the Federal Housing Administration were up more than a quarter, and conventional activity climbed 38 percent. FHA share narrowed to 8.74 percent from 9.58 percent.

Behind the across-the-board strength in this week’s activity were improving mortgage rates.

The conforming, fixed-rate, 30-year mortgage plunged to 4.07 percent today from 4.23 percent last week. A year prior, the 30 year was 4.44 percent.

Jumbo mortgages cost 71 basis points more than conforming mortgages in the latest report, a bigger premium than 63 BPS last week.

Borrowers were quoted 15-year rates that were 72 BPS less than 30-year loans in today’s report, not as competitive as the 81-basis-point spread last week.

So far, mortgage rates are headed lower into next week’s report based on the 10-year Treasury note yield. The 10-year yield closed at 1.84 percent today after sinking to 1.72 percent on Thursday, based on Department of the Treasury data. The 10 year yielded 2.08 percent last Friday.

The 24-basis-point week-over-week decline suggests there might be more room for lower rates in the next Mortgage Market Index report.

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Full Mortgage Market Index Report

Week Ended Sept. 23, 2011

National Average Loan Amount

Top 3 States state
$299,826 HI
$292,982 DC
$289,976 MA

Bottom 3 States state
$150,614 WV
$159,486 SD
$164,355 NE

National Average Rate-Term Refinance Amount

Top 3 States state
$317,982 HI
$296,172 DC
$295,124 MA

Bottom 3 States state
$146,882 WY
$158,795 WV
$164,022 SD

National Average Cashout Refinance Amount

Top 3 States state
$316,570 HI
$300,708 DC
$273,245 CA

Bottom 3 States state
$128,510 WV
$138,395 NV
$145,497 SD

National Average Jumbo Loan Amount

Top 3 States state
$946,429 WY
$832,746 OK
$809,808 IL

Bottom 3 States state
$473,332 AK
$500,000 SD
$505,167 WV

National Rate-Term Refinance Share

National Cashout Refinance Share

National Cashout Refinance Share

Product state State Average
Conv30 MA $310,130
Conv30 MO $218,322
Conv30 CA $305,071
Conv15 MA $280,072
Conv30 IL $247,861
Conv15 MO $188,820
Conv20 MA $293,188
Conv30 TX $218,895
Conv30 NJ $290,095
Conv30 NC $259,128
Conv30 PA $251,803
Conv30 NE $183,518
Conv30 KS $218,113
Conv15 TX $215,460
Conv30 VA $276,898

Average rate for each product from All investors Product
4.069% Conv30
3.349% Conv15
3.123% 5-1LiborARM
3.892% FHA30
3.439% FHA15
3.895% VA30
4.776% Jumbo30

Mortgage Market Index

National ARM Share

National FHA Share

Mortgage Market Index 374 for week ended Sept. 23

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