Home lending activity staged a slight comeback despite a bump in interest rates. Meanwhile, purchase financing activity climbed to the highest level in 10 months.
The U.S. Mortgage Market Index from LoanSifter/Optimal Blue and Mortgage Daily finished the week ended March 13 at 193.
Compared to a week earlier, the index — which moves based on average per-user pricing inquiries by LoanSifter clients — increased 4 percent, and it was up 11 percent on a year-over-year basis.
Leading the increase were inquiries for loans insured by the Federal Housing Administration. FHA business was up 6 percent from the week ended March 6 and 45 percent higher than the same week last year.
FHA inquiries accounted for 20.3 percent of all activity, widening from the previous week’s 20.0 percent share and 15.6 percent a year earlier.
Next was jumbo business, which climbed more than 4 percent from the previous week and was up 16 percent from the week ended March 14, 2014.
Jumbo share was relatively unchanged at 10.3 percent but expanded from 9.9 percent twelve months prior.
Inquiries for jumbo mortgages yielded rates that were 10 basis points more than conforming rates. The jumbo-conforming spread was trimmed from 13 BPS in the previous report but widened from 6 BPS in the year-earlier report.
Refinance business strengthened nearly 4 percent for the week and has soared 43 percent for the year. Refinance share was the same as in the last report at 58.9 percent but widened from 45.7 percent one year prior. The latest number consisted of a 16.1 percent cashout share and a 42.8 percent rate-term share.
Purchase activity followed, climbing 3.7 percent from the last report. Purchase business was at its highest level since the week ended May 16, 2014.
But inquiries for purchase transactions have retreated 16 percent compared to one year prior.
A 3.1 percent week-over-week rise was recorded for conventional business, while the year-over-year increase was 4 percent.
The weakest category was adjustable-rate mortgages, with ARM inquiries up just 3.1 percent. ARM business has tumbled by more than a quarter from the same week in 2014. ARM share was mostly the same at 9.1 percent but has narrowed from 13.7 percent in the year-earlier report.
Average fixed rates on 30-year conforming loans were 4.177 percent, slightly higher than 4.150 percent seven days earlier but much better than 4.677 percent twelve months earlier.
On 15-year mortgages, rates were 85 BPS better than on 30-year mortgages. The spread was wider than 83 BPS in the previous report but down significantly from 102 BPS in the year-earlier report.
In next week’s Mortgage Market Index report, fixed rates are unlikely to move much, according to an analysis of Treasury market data by Mortgage Daily.
