|Refinances Spike, Purchases RiseMortgage Market Index 374 for week ended Sept. 23
Sept. 23, 2011
By MortgageDaily.com 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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