New mortgage business soared to the highest level since the summer of 2013 as rates continued to retreat. Government-insured activity led the charge.
In the week ended Jan. 16, the U.S. Mortgage Market Index from LoanSifter/Optimal Blue and Mortgage Daily was 272.
The last time the index, which is based on average per-user product-and-pricing inquiries by LoanSifter clients, was this high was the week ended June 28, 2013, when it came in at 293.
The latest index increased 14 percent from the week ended Jan. 2, while it was up by 58 percent compared to the same week in 2014.
Out front of the week-over-week improvement were inquiries for mortgages insured by the Federal Housing Administration, which surged 38 percent. FHA business was up 37 percent compared to the week ended Jan. 17, 2014. FHA share grew to 14.1 percent from 11.7 percent but was thinner than 16.3 percent a year earlier.
Next were inquiries for refinances, climbing 21 percent from seven days earlier. Refinance business leapt 122 percent from 12 months earlier — up more than any other category on a year-over-year basis.
Refinance share widened to 69.5 percent from 65.4 percent in the previous report. In the year-earlier report, refinance share was just 49.5 percent. The latest share was comprised of a 55.7 percent rate-term share and a 13.8 percent cashout share.
An 18 percent increase from a week prior was recorded for adjustable-rate mortgage business, while ARM activity was up 28 percent from the same week in 2014. ARM share increased to 9.5 percent from 9.2 percent but was thinner than 11.8 percent at the same point last year.
Inquiries for jumbo mortgages rose 15 percent and have surged 81 percent over the last year. Jumbo share inched up to 10.5 percent from 10.4 percent and has widened from 9.2 percent from the same week a year prior.
Quotes for rates on jumbo loans were 15 basis points higher than on conforming loans, worsening from 12 BPS in the last report. The jumbo-conforming spread was also worse than 13 BPS in the year-earlier report.
Conventional business moved up 13 percent and was 64 percent better than this week last year.
The worst-performing category was purchase financing, with purchase activity up just 1 percent for the week and down 4 percent from a year earlier.
Conforming 30-year fixed rates averaged 4.014 percent, down 9 BPS from the previous week. Thirty-year rates were 69 BPS better than a year prior.
Consumers shopping for 15-year mortgages were quoted rates that were 84 BPS less than 30-year rates. The spread improved from 83 BPS seven days previous but was nowhere as good as 96 BPS a year previous.
Mortgage Daily’s analysis of this week’s Treasury market activity indicates that fixed rates might be approximately 3 BPS higher in the next report.
