A healthy increase in new purchase-money financing drove up new weekly home-lending activity. Government and jumbo mortgage business soared.
The Mortgage Daily U.S. Mortgage Market Index, a reflection of average per-user rate locks by OpenClose clients, was 168 in the week ended April 7.
A 13 percent rise was recorded from the previous week for the index, an indication of upcoming loan originations. No seasonal adjustments are made.
Compared to the same seven-day period in 2016, the MMI declined 15 percent.
Government rate locks leapt from the week ended March 31, 2017, by more than a fifth — more than any other category and leaving the Government MMI at 67. Government share widened to 39.9 percent from 37.6 percent, with the latest share consisting of a 28.1 percent FHA share and a 11.8 percent VA share.
Nearly a 20 percent week-over-week increase was made for the Jumbo MMI, though the category retreated 30 percent from the week ended April 8, 2016. Jumbo share broadened to 5.4 percent from 5.1 percent a week earlier but thinned from 6.6 percent a year earlier.
Interest rates on jumbo mortgages were 10 basis points lower than conforming rate. The jumbo-conforming spread widened from a negative 6 BPS the prior week and a negative 3 BPS a year prior.
Rate locks for loans to finance a home purchase climbed 18 percent from the last report, with the Purchase MMI finishing the week at 117. Purchase business fell 12 percent from the upwardly revised level from the same seven-day period in 2016.
The Conventional MMI rose 9 percent to 67.
Adjustable-rate mortgage rate locks ascended 6 percent on a week-over-week basis but fell 19 percent on a year-over-year basis. ARM share thinned to 8.4 percent from 9.0 percent and was also more narrow than 8.8 percent
this week last year.
The smallest gain from the prior report was with refinance business: 4 percent. Refinance activity fell by a fifth from the downwardly revised level one year ago.
Refinance share was reduced to 30.4 percent from 33.1 percent and also thinned from a downwardly revised 32.4 percent the same week in 2016. This week’s share was comprised of a 17.5 percent rate-term share and a 12.9 percent cashout share.
