Gov Leads Weekly Mortgage Business Higher

For the week ended June 9, the
Mortgage Market Index from Mortgage Daily was 157. The index is an indication of upcoming originations based on OpenClose rate-lock volume.

The MMI, which is not adjusted for seasonal factors, jumped 36 percent compared to the preceding week — which included the Memorial Day holiday.

But business was slower than during the same week last year by 13 percent.

Out front of the week-over-week gain was the Government MMI, which shot up 51 percent from the week ended June 2. Government share widened to 41.0 percent from 37.0 percent. This week’s share included a 27.3 percent Federal Housing Administration share and a 13.7 percent Department of Veterans Affairs share.

A 46 percent increase from the last report was recorded for refinance rate locks, though the category fell 7 percent from the downwardly revised level for the week ended June 10, 2016. Refinance share widened to 31.4 percent from 29.3 percent a week earlier and a year earlier. This week’s share was made up of a 15.5 percent rate-term share and a 15.9 percent cashout share.

Up next was the Purchase MMI, which climbed 32 percent from the prior week to 108. But purchase business slowed 16 percent from the upwardly revised level for the same week in 2016.

Rate locks for adjustable-rate mortgages increased 27 percent but slipped 4 percent from a year ago. ARM share thinned to 8.7 percent from 9.3 percent but was wider than 7.9 percent a year prior.

The Conventional MMI was also up 27 percent, to 93.

The smallest gain from the last report was with rate locks for jumbo mortgages, which rose 5 percent.
Jumbo activity improved 13 percent from this week last year. Jumbo share was cut to 6.4 percent from 8.3 percent but was wider than 5.0 percent twelve months earlier.