For the third week in a row, new mortgage activity has moved higher. Purchase financing activity led the weekly increase.
The U.S. Mortgage Market Index from LoanSifter and Mortgage Daily for the week ended March 14 increased 6 percent from a week earlier to 174.
The index, which is based on average per-user pricing inquiries by LoanSifter clients, has increased each week since the week ended Feb. 21, when it came in at 145.
Activity has retreated by nearly a third compared to the same week in 2013. The year-earlier numbers were revised to reflect statistics from the same data provider.
Out front this week were inquiries for purchase financing, which climbed 8 percent from the week ended March 7. Purchase business was 13 percent better than the same week last year.
Close behind was adjustable-rate mortgage activity, which rose 6 percent from the last report. ARM inquiries were up 85 percent from the week ended March 15, 2013 — the biggest year-over-year increase of any category. ARMÂ share was 13.7 percent, a little wider than 13.6 percent in the last report and far wider than 5.0 percent in the same week a year ago.
Next were inquiries for loans insured by the Federal Housing Administration, which increased by more than 5 percent on a week-over-week basis. But FHA activity has fallen 38 percent over the past year. FHA share was unchanged from last week at 15.6 percent and was down from 17.0 percent 12 months earlier.
A nearly 5 percent gain over the previous week was made with conventional loans, though conventional business was 39 percent lower than one year earlier.
Pricing inquiries for refinances moved up 3 percent from a week earlier but have fallen by more than half over the past year. Refinance share fell to 45.7 percent from 46.8 percent and was more than two-thirds during the same week in 2013. The most recent refinance share reflected a 32.0 percent rate-term share and a 13.7 percent cashout share.
Jumbo mortgages turned in the weakest performance, inching up less than 1 percent from the previous report. But jumbo business was 16 percent stronger than a year ago. Jumbo share fell to 9.9 percent from 10.4 percent but has widened considerably from 5.8 percent in the year-earlier period.
Interest rates on jumbo mortgages were 6 basis points more than on conforming loans. The jumbo-conforming spread improved from 8 BPS in the last report and 23 BPS one year prior.
Conforming 30-year fixed rates averaged 4.677 percent, up slightly from 4.648 percent seven days prior. A year prior, 30-year rates averaged 3.906 percent.
The difference between 15- and 30-year rates was 102 BPS, the same as last week. But 15-year rates were only discounted by 77 BPS in the same week during 2013.
Treasury market activity suggests that fixed mortgage rates might be around 7 BPS better in the next report.
According to data reported by the Department of the Treasury, the yield on the 10-year Treasury note averaged 2.72 percent during the week covered by the latest Mortgage Market Index, while the 10-year yield closed Friday at 2.65 percent.
