Despite stronger business on a year-over-year basis, refinance activity took the hardest hit as new mortgage activity slowed this past week. Meanwhile conventional activity had the second worst week-over-week showing.
At 171, the U.S. Mortgage Market Index from LoanSifter/Optimal Blue and Mortgage Daily for the week ended April 24 dipped 9 percent from the prior week’s report.
The index, which offers insight into average per-user product-and-pricing inquiries by LoanSifter customers, slipped almost 3 percent from the same point last year.
Refinancing inquiries dropped 13 percent from the week ended April 17 — the worst week-over-week performing category. Yet, refinance activity showed the best productivity on a year-over-year basis, with a 31 percent boost over the same time frame last year.
Refinance share slipped to 57.8 percent from 60.0 percent the previous week but increased from 43.0 percent at the same point a year ago. The most recent figure included a 16.1 percent cashout share and a 41.7 percent rate-term share.
Conventional activity dropped to 11 percent from last week and 8 percent from the close of the same week in 2014.
Declining 6 percent from the prior week, adjustable-rate mortgage activity fell 28 percent from the week ended April 25 last year. Thus, ARM business had the worst productivity on a year-over year basis.
For the week ended April 24, ARM share was at 9.7 percent, up from 9.4 percent a week ago but well behind the 13.1 percent a year ago.
Jumbo loan activity decreased by 5 percent from last week’s report. But compared to the same week one year ago, recent jumbo business was 9 percent better.
At 11.2 percent, jumbo loan share was up from 10.7 percent the previous week and 10.0 percent the week ended April 25 last year.
Jumbo interest rates climbed to 18 basis points over conforming rates. The recent jumbo-conforming spread was slightly above the16 BPS from the previous week’s report and much wider than the 3 BPS from the April 25, 2014 report.
For loans insured by the Federal Housing Administration, inquiries decreased 4.8 percent from last week but blossomed 16 percent over the same week last year. The most recent week’s FHA share rose to 19.2 percent from the prior week’s 18.3 percent and the same week last year’s 16.1 percent.
Purchase market financing stumbled 4 percent from the prior week, the best week-over-week performance, and dove 28 percent from the same week one year ago.
Fixed interest rates on conforming 30-year loans averaged 4.055 percent for the week. This average was less than one basis point higher than last week but dropped almost 63 BPS from the same point in 2014.
Mortgage rate quotes on 15-year home loans were 85 BPS better than rates on 30-year mortgages. The previous week, the spread was nearly identical, but the week ended April 25, 2014, the spread was wider at 100 BPS.
According to Treasury market activity analysis by Mortgage Daily, fixed rates are unlikely to be much different in next week’s report.
