Home loan rates turned higher this past week, significantly depressing new refinancing activity and dragging overall business lower.
The U.S. Mortgage Market Index from LoanSifter/Optimal Blue and Mortgage Daily came in at 199 for the week ended Feb. 13.
Compared to a week earlier, the index — a reflection of average per-user product-and-pricing inquiries by LoanSifter clients — declined 15 percent. But it jumped 27 percent from the same week in 2014.
The week’s biggest decline came from refinances, with inquiries tumbling 22 percent from the week ended Feb. 6.
But refinance activity has soared by two-thirds versus one year prior — the best year-over-year improvement of all categories.
Refinance share fell to 63.3 percent from 68.6 percent in the last report but was up from 48.6 percent in the year-earlier report. The latest share consisted of a 47.8 percent rate-term share and a 15.5 percent cashout share.
Up next was conventional business — which tends to move in tandem with refinance activity. Conventional inquiries slid 17.4 percent from the prior week but climbed 23 percent from the week ended Feb. 14, 2014.
After that were inquiries for jumbo mortgages, which fell 17.2 percent on a week-over-week basis but improved 16 percent on a year-over-year basis. Jumbo share slipped to 9.6 percent from 9.8 percent and was down from 10.5 percent in the same week last year.
Interest rates on jumbo loans were 21 BPS worse than on conforming loans. The jumbo-conforming spread leapt from 17 BPS one week prior and
skyrocketed from 5 BPS fifty-two weeks prior.
After that was the adjustable-rate mortgage category with a 16 percent decline from the previous report.
ARM business slowed 15 percent from one year earlier. ARM share was reduced to 8.6 percent from 8.7 percent and has plunged from 12.9 percent in the year-earlier period.
Inquiries for loans insured by the Federal Housing Administration followed, dropping just 9 percent from the last report. FHA business, however, shot up 64 percent from 12 months prior. FHA inquiries accounted for 19.5 percent of overall activity, rising from 18.1 percent seven days earlier and 15.1 percent one year earlier.
The best week-over-week performance was delivered by inquiries for purchase financing, which were down only 5 percent. Purchase activity was up 5 percent from the same week during 2014.
Overall business fell as 30-year conventional fixed rates jumped 10 BPS over the prior seven days to 4.069 percent. But the 30 year has improved 56 BPS over the prior 12 months.
Rates on 15-year mortgages were 83 BPS lower than on 30-year loans. The spread widened from the prior week’s 82 BPS but thinned from the year prior’s 99 BPS.
Rates are looking like they won’t be
much different in the next Mortgage Market Index report based on Mortgage Daily’s analysis of weekly Treasury activity.
