Adjustable-rate mortgages were out front of a weekly decline in new mortgage activity. More competitive jumbo rates weren’t enough to boost jumbo activity.
The U.S. Mortgage Market Index from LoanSifter/Optimal Blue and Mortgage Daily finished the week ended July 25 at 170.
The index is a reflection of average per-user product-and-pricing inquiries pulled by mortgage clients of LoanSifter.
Compared to a week earlier, the index slipped 3 percent, while it was down 15 percent versus the same week last year.
ARMs took the biggest beating in the latest report, dropping 7 percent from the week ended July 18 but barely changed from a year earlier. ARM share fell to 10.8 percent from 11.2 percent but was wider than 9.1 percent one year prior.
A more than 4 percent decline was recorded for jumbo mortgage inquiries. But jumbo business jumped 17 percent from the week ended July 26, 2013. Jumbo share slipped to 10.2 percent from 10.3 percent but was much wider than 7.3 percent in the year-earlier period.
The weakening of jumbo activity was surprising given the improved pricing, with jumbo rates 12 basis points less than conforming rates. The jumbo-conforming spread widened from a negative 11 BPS in the previous report and swung from a positive 23 BPS one year previous.
Refinance business declined 4.0 percent for the week and was down 22 percent on a year-over-year basis. Refinance share slipped to 46.0 percent from 46.6 percent seven days earlier and 49.9 percent a year earlier. The most recent share consisted of a 30.2 percent rate-term share and a 15.8 percent cashout share.
Next were conventional pricing inquiries, which retreated 3.9 percent from the previous report and 24 percent from the year-earlier report.
The smallest hit was taken by pricing inquiries for loans insured by the Federal Housing Administration, which were off just 2 percent. FHAÂ business has subsided 8 percent from the same week in 2013. FHAÂ share, however, expanded to 16.0 percent from 15.9 percent in the prior report and 14.8 percent one year prior.
Fixed rates on 30-year loans averaged 4.492 percent, inching down from 4.511 percent seven days earlier and declining from 4.618 percent 12 months earlier.
Fifteen-year mortgages were 96 BPS lower than 30-year loans. The spread thinned from 97 BPS in the last report but widened from 87 BPS in the same week last year.
Mortgage rates are poised to be about the same in next week’s report based on Treasury market activity. The yield on the 10-year Treasury note, a benchmark for fixed mortgage rates, averaged 2.49 percent during the week reflected in the latest Mortgage Market Index report, based on Treasury Department data, while it closed at 2.48 percent Friday.
