Refinances led weekly mortgage activity lower as fixed interest rates on residential loans made a move higher.
At 135 for the week ended June 12, the U.S. Mortgage Market Index from LoanSifter/Optimal Blue and Mortgage Daily was down 4 percent from seven days prior.
The index, a representation of average per-user product-and-pricing inquiries by clients of LoanSifter, has tumbled 21 percent from 12 months prior.
Refinance activity took the biggest hit, declining 6.6 percent from the week ended June 5. Refinances have retreated 11 percent
from the same week last year. Refinance share fell to 50.5 percent from 52.0 percent in the last report but climbed from 45.2 percent in the year-earlier report. This latest share reflected a 33.4 percent rate-term share and a 17.1 percent cashout share.
Close behind were inquiries for mortgages insured by the Federal Housing Administration with a 6.5 percent week-over-week decline. But FHA business was virtually unchanged on a year-over-year basis — the best performance of any category compared to the week ended June 13, 2014.
FHA share narrowed to 20.4 percent from 21.0 percent a week earlier but was wider than 16.2 percent a year earlier.
After that was conventional business, which was down three percent for the week and 27 percent for the year.
Inquiries for adjustable-rate mortgages followed, retreating more than two percent from the prior report and plunging 38 percent from a year prior — the biggest year-over-year decline. ARM share fattened to 9.2 percent from 9.1 percent but was cut from 11.8 percent this week in 2014.
A less than two percent drop was recorded for jumbo activity, the smallest of any category, while an 18 percent drop occurred compared to twelve months prior. Jumbo share increased to 10.4 percent from 10.2 percent and was also more than 10.0 percent in the same week a year ago.
Rates on
jumbo mortgages were just 10 basis points more than on conforming loans. The jumbo-conforming spread narrowed from 15 BPS a week earlier and swung from a negative nine BPS a year earlier.
Conforming 30-year fixed rates averaged 4.369 percent in the latest report, 10 BPS more than in the last report but 17 BPS better than the year-previous report.
On 15-year loans, rates were 87 BPS lower than on 30-year mortgages. The spread was 89 BPS one week prior and 99 BPS one year prior.
A Mortgage Daily analysis of Treasury market activity indicates that interest rates on home loans aren’t likely to be much different in the next report, though they could edge higher.
