As expected, new loan activity retreated during the week that included Christmas. But business was better than in the same week last year, with government-insured activity seeing the biggest gain.
At 110, the U.S. Mortgage Market Index from OpenClose and Mortgage Daily for the week that ended on Dec. 25 was down 28 percent compared to the previous seven-day period.
The index, a measure of average per-user rate locks submitted by OpenClose clients, ascended, however, 23 percent from a 12 months prior. Year-earlier figures were revised to reflect numbers from the same data provider.
Rate locks for jumbo mortgages tumbled 38 percent from the week ended Jan. 18. The category was down six percent on a year-over-year basis. Jumbo share thinned to 7.5 percent from 8.7 percent a week earlier and 9.9 percent a year earlier.
Rates on jumbo mortgages were 15 basis points less than on conforming loans. The jumbo-conforming spread thinned from from a negative 19 BPS seven days previous and swung from a positive 12 BPS one year previous.
A 35 percent decline from the last report was recorded for refinance rate locks. But the category was up by more than half from the same week in 2014. Refinance share fell to 73.5 percent from 80.8 percent but widened from 59.3 percent one year prior. The most-recent share was comprised of a 44.0 percent rate-term share and a 29.5 percent cashout share.
Rate locks for mortgages insured by the Federal Housing Administration slowed 29 percent. However, FHA business has soared 104 percent versus the same week last year. FHA share was 24.4 percent, unchanged from a week earlier but much wider than 14.7 percent a year earlier.
A 28 percent week-over-week decline was recorded for conventional business, while the category was up nine percent on a year-over-year basis.
Compared to seven days prior, rate locks for adjustable-rate mortgages were off 13 percent. But ARM business jumped by half from the same week a year ago. ARM share widened to 11.8 percent from 9.7 percent a week prior and a year prior.
Thirty-year fixed rates averaged 3.96 percent in the latest report, a basis point less than one week previous and 32 BPS lower than one year previous.
Rates on 15-year mortgages were 74 BPS less than 30-year rates. The spread thinned from 75 BPS a week earlier and 90 BPS a year earlier.
Mortgage Daily’s analysis of Treasury market activity indicates that fixed rates shouldn’t be much different in the next Mortgage Market Index report, possibly two BPS less.
