Presidents’ Day, along with rate deterioration, took a toll on new mortgage activity. But business was still better than a year ago.
At 180, the U.S. Mortgage Market Index from LoanSifter/Optimal Blue and Mortgage Daily for the week ended Feb. 20 was off by a tenth from the prior report.
But compared to the same week in 2014, the index — a reflection of average per-user product-and-pricing inquiries by LoanSifter clients — was up by nearly a quarter.
The biggest toll was taken on inquiries for refinances, which slid 15 percent from the week ended Feb. 13. But refinance activity has ascended 58 percent from the same week last year — the biggest year-over-year improvement.
Refinance share fell to 59.5 percent from 63.3 percent but fattened considerably from 46.4 percent from
one year earlier. The latest share consisted of a 44.5 percent rate-term share and a 15.0 percent cashout share.
Next up were inquiries for conventional loans, which descended 12 percent on a week-over-week basis but ascended 18 percent from the week ended Feb. 21, 2014.
After that was the adjustable-rate mortgage category, which saw an 11 percent drop in inquiries from the last report. ARM activity was down by a fifth compared to 12 months earlier. ARM share slipped to just under 8.6 percent from just over 8.6 percent and slid from 13.2 percent in the year-earlier report.
Jumbo business was off 8 percent from seven days prior but 18 percent better than one year prior. Jumbo share rose to 9.8 percent from 9.6 percent but declined from 10.2 percent a year earlier.
Prospective jumbo borrowers were quoted interest rates that were 14 basis points higher than on conforming loans. The jumbo-conforming spread narrowed from 21 BPS in the last report but widened from only 5 BPS in the year-prior report.
Inquiries for mortgages insured by the Federal Housing Administration were down less than 7 percent from seven days previous and have soared 58 percent from the same week in the previous year. FHA share was 20.1 percent, inching up from 19.5 percent. In the report from 12 months earlier, FHA share was 15.8 percent.
The smallest week-over-week decline was with inquiries for purchase financing: less than 1 percent. Purchase activity was off 7 percent from the year-earlier week.
Thirty-year fixed rates averaged 4.121 percent on conforming loans, up from 4.069 percent but 55 BPS better than one year prior.
Fifteen-year rates were 83 BPS better than 30-year rates, the same as in the last report. But the spread has thinned from 100 BPS over the past year.
Fixed rates won’t be much different in the next Mortgage Market Index report, according to Mortgage Daily’s analysis of weekly Treasury market activity.
