Despite a deterioration in mortgage rates, new mortgage activity jumped this week — though the increase was likely the result of previous lower activity from the recent holiday. Refinances led the increase, and jumbo rates became less expensive compared to their conforming counterparts.
The Mortech-Mortgage Daily Mortgage Market Index rose to 260 for the week ended Wednesday from 188 a week earlier.
The average U.S. loan amount also increased, to $209,625 from $204,978. This week’s highest average loan amount could be found in Washington, D.C.: $287,619. South Dakota’s $143,890 was the lowest average.
The conventional 30-year fixed-rate mortgage averaged 4.677 percent this week, climbing from 4.514 percent. The jumbo 30-year, meanwhile, rose just 10 basis points to 5.43 percent. The jumbo-conventional spread fell to 75 BPS from 82 BPS a week ago.
Although mortgage rates jumped, refinance activity picked up — accounting for 56 percent of this week’s transactions compared to 50 percent last week. This week’s rate-term share was 40 percent, and the cashout share was 16 percent.
