A week-over-week surge in conventional activity was the primary driver of a rise in new mortgage business, though cashout refinance and adjustable-rate activity also jumped.
The Mortgage Market Index from Mortgage Daily, an indication of upcoming originations based on OpenClose rate-lock volume, was 163 in the week ended June 16.
Compared to the previous week, the index, which reflects no adjustments for seasonal factors, moved up 4 percent. But it was down 8 percent versus one year earlier.
Out front of the increase from the week ended June 9 were rate locks for adjustable-rate mortgages, which soared 38 percent. ARM activity was also up 38 percent from the same week in 2016. ARM share widened to 11.6 percent from 8.7 percent a week earlier and 7.7 percent a year earlier.
An 11 percent gain from the previous week was recorded for the Conventional MMI, leaving that index at 103.
Rate locks for refinances rose 8 percent from the last report, while they retreated 9 percent from the downwardly revised level for the week ended June 17, 2016. Refinance share widened to 32.8 percent from 31.4 percent but thinned from the downwardly revised share of 33.1 percent one year ago. This week’s share consisted of a 14.9 percent rate-term share and an 18.0 percent cashout share — the fattest cashout share since it was 19.4 percent in the week ended Jan. 13, 2017.
The Jumbo MMI inched up 2 percent from last week but fell 5 percent from the same week last year. Jumbo share was 6.4 percent, the same as in the preceding week and slightly wider than 6.2 percent this week last year. Interest rates on jumbo loans were 3 basis points more than conforming rates. The jumbo-conforming spread thinned from 5 BPS a week prior but was the same as a year prior.
At 110, the Purchase MMI was up 1 percent for the week and down 7 percent from the upwardly revised level 12 months ago.
The only index to see a week-over-week decline was the Government MMI, which dropped 7 percent to 60. Government share was 36.7 percent, more narrow than 41.0 percent in the last report. This week’s share was comprised of a 27.0 percent FHA share and a 9.7 percent VA share.
