Although a week-over-week decline in new mortgage business was mostly across-the-board, adjustable-rate mortgage activity rose — with ARM share at its widest in over a year.
For the week that finished on May 26, the U.S. Mortgage Market Index from Mortgage Daily — which is based on average per-user rate locks by OpenClose clients — was 155.
The index, which is not seasonally adjusted, retreated 16 percent from the previous report — indicating that upcoming originations might be weaker than previously expected.
On a year-over-year basis, the index was down by 10 percent.
Exhibiting the most extreme drop from the week ended May 19 was the Conventional MMI, which sank 22 percent to 96.
Jumbo rate-lock volume slowed 19 percent but was up 23 percent from the week ended May 27, 2016. Nine percent of all rate locks were jumbo, more narrow than the 9.3 percent share in the prior report. Jumbo share widened, however, from 6.6 percent this week last year.
Jumbo mortgage rates were a basis point lower than their conforming counterparts. The jumbo-conforming spread swung from a positive 3 basis points the preceding seven-day period and a huge 11 BPS the same week in 2016.
A 16 percent decline from a week earlier left the Purchase MMI at 111. Purchase business dipped 9 percent from the upwardly revised level a year earlier.
Refinance activity
fell 15 percent and was off 12 percent from the downwardly revised level during the same seven days in 2016. Refinance share widened to 28.1 percent from 27.9 percent but has thinned slightly from 28.8 percent a year previous. This week’s share was comprised of a 10.8 percent rate-term share and a 17.3 percent cashout share — the fattest cashout share since it was 19.4 percent in the week ended Jan. 13, 2017.
Rate Locks for mortgages insured by the Federal Housing Administration or guaranteed by the Department of Veterans Affairs dipped 5 percent, placing the Government MMI at 59. Government share widened to 38.1 percent from 33.5 percent, with FHA share accounting for 28.6 percent and VA share at 9.5 percent.
One index, the ARM MMI, jumped 17 percent from the previous seven-day period, though it slipped 3 percent from one year prior. ARM share was 12.4 percent.
It was last this wide in the week ended Jan. 8, 2016, when it was 13.0 percent. ARM share was 8.9 percent in the last report and 11.5 percent this week last year.
