As fixed rates retreated, adjustable-rate activity took the biggest hit in the week of business that included the Independence Day holiday.
The U.S. Mortgage Market Index from OpenClose and Mortgage Daily was 136 for the week ended July 10.
The latest report reflects average per-user rate locks by clients of OpenClose for the seven days ended Thursday and included the holiday on Friday July 3.
Business slowed eight percent less than the the previous week.
Compared to the same week last year, rate-lock volume has declined 18 percent. Year-earlier data have been revised to reflect numbers from the same data provider.
With a 22 percent decline from the week ended July 3, locks for adjustable-rate mortgages were down more than any other category. ARM activity has declined by a quarter on a year-over-year basis.
ARM share slid to 9.6 percent from 11.3 percent in the last report and 10.5 percent in the year-earlier report.
The next biggest hit, 17 percent, was taken by refinances, which were down just nine percent from the week ended July 11, 2014. Refinance share thinned to 50.7 percent from 55.9 percent seven days prior but widened from 45.9 percent twelve months prior. The latest share was comprised of a 33.1 percent rate-term share and a 17.6 percent cashout share.
A 16 percent week-over-week decline was reported for locks on loans insured by the Federal Housing Administration. But government volume was 14 better than the same week last year.
FHA share was 22.1 percent, off from 24.2 percent a week prior but fatter than 16.0 percent a year prior.
Conventional business was down nearly six percent and has diminished 24 percent from one year previous.
A more than five percent reduction in lock volume was recorded for purchase financing, which was down by more than a fifth from this week in 2014.
With just a three percent dip, jumbo activity had the most modest decline. Jumbo rate locks have ascended 28 percent from one year ago. Jumbo share climbed to 12.3 percent from 11.7 percent in the last report and 7.9 percent in the year-earlier report.
Interest rates on jumbo mortgages averaged 17 basis points less than on conforming loans. The jumbo-conforming spread widened from a negative 13 BPS seven days prior and a negative eight BPS twelve months prior.
Conforming 30-year fixed rates averaged 4.04 percent, four BPS less than in the last report and 48 BPS better than this week last year.
Fifteen-year rates were 84 BPS less than 30-year rates, the same spread as in the prior week’s report. But this spread has narrowed from 99 BPS one year prior.
Fixed rates might be around
13 basis points worse in the next report, according to Mortgage Daily’s analysis of Treasury market activity.
