An expected recovery from the holiday week hit mortgage lending, with inquiries for refinances making the strongest comeback. Refinances also led an even more impressive year-over-year gain.
There was a 12 percent increase in overall activity from a week earlier, leaving the U.S. Mortgage Market Index from LoanSifter/Optimal Blue and Mortgage Daily at 201 for the week ended Feb. 27.
A 23 percent year-over-year improvement was recorded for new activity, which reflects average per-user product-and-pricing inquiries pulled by customers of LoanSifter.
A 17 percent increase from the week ended Feb. 20 was clocked for refinance business. Compared to the same week in 2014, activity soared 61 percent — more than any other category.
Refinance share rose to 62.1 percent from 59.5 percent and fattened from 47.3 percent one year prior.
Up next were inquiries for adjustable-rate mortgages, which were nearly 17 percent higher than seven days earlier. ARM activity, however, was off by more than a fifth from the week ended Feb. 28, 2014 — the worst week-over-week performance of any category.
ARM share widened to 8.9 percent from 8.6 percent but thinned from 13.7 percent
in the same week last year.
A more than 14 percent week-over-week improvement was made on the conventional category, while the year-over-year increase was 17 percent.
Jumbo business rose nearly 14 percent from the prior report and was up by more than a quarter from the year-earlier report. Jumbo share moved up to 10.0 percent from 9.8 percent and was also wider than 9.7 percent at the same point in 2014.
While inquiries for loans insured by the Federal Housing Administration increased just 6 percent, they were up by more than half from the same week in 2014. FHA share slipped to 19.0 percent from 20.1 percent but was more than the 15.4 percent share as of one year prior.
The weakest gain from the holiday week was made by purchase financing inquiries, which were 5 percent more than in the previous week’s report. Purchase activity has fallen 12 percent since the same point last year.
In addition to recovering from the week that included Presidents Day, a 1-basis-point ease in 30-year fixed rates
contributed to the gain.
Thirty-year conventional rates averaged 4.107 in the latest report, 4.121 percent a week prior, and 4.647 percent a year prior.
Inquiries for 15-year mortgages yielded fixed rates that were 82 BPS better than on 30-year inquiries. The spread slipped from 83 percent seven days prior and slid from 101 BPS
twelve months prior.
As was the case in the last report, rates aren’t likely to be much different in the next Mortgage Market Index report. Mortgage Daily’s analysis of Treasury market activity suggests 30-year fixed rates will stay near the current level in next week’s report — though an upcoming employment report could impact next Friday’s rates.
