Even as fixed mortgage rates dipped below 4.5 percent, a resurgence remained illusive. Adjustable-rate mortgages delivered the weakest performance.
At 170 in the week ended Friday, the U.S. Mortgage Market Index from LoanSifter/Optimal Blue and Mortgage Daily was down nearly 3 percent from the previous report.
Compared to the same week last year, the index — a reflection of average per-user pricing inquiries by clients of LoanSifter — was down nearly 9 percent.
Leading activity lower were ARMÂ inquiries, which declined by nearly 6 percent from the week ended Aug. 8. ARM activity rose, however, by nearly 4 percent compared to a year earlier. ARM share fell to 11.0 percent from 11.4 percent but has widened from 9.7 percent 12 months prior.
Next were inquiries for purchase financing, which dropped 5 percent from the prior week and have diminished 9 percent from the week ended Aug. 16, 2013.
After that were conventional loan inquiries, falling 4 percent on a week-over-week basis and 16 percent lower on a year-over-year basis.
A nearly 1 percent decline was recorded for jumbo mortgage pricing inquiries, though the category strengthened 12 percent from the same week in 2013. Jumbo share edged up to 10.4 percent from 10.2 percent and was also fatter than 8.5 percent 12 months prior.
Jumbo interest rates were more competitive in the latest report at 12 basis points less than rates on conforming mortgages. The jumbo-conforming spread was a negative 9 BPS a week earlier and a positive 37 BPS a year earlier.
Refinances were mostly flat compared to the previous report but off 9 percent from the same week in 2013. Refinance share widened to 49.2 percent from 47.9 percent and was even wider than 49.1 percent one year prior. The most recent refinance share was comprised of a 32.8 percent rate-term share and a 16.4 percent cashout share.
The only category to experience a week-over-week increase — albeit just an 0.3 percent rise — was the Federal Housing Administration loan category. FHA-insured inquiries were off, however, by 6 percent from the same week last year. FHA share rose to 15.9 percent from 15.5 percent in the previous report and 15.4 percent in the year-earlier report.
Fixed rates on 30-year conforming loans averaged 4.375 percent, nearly 5 BPS better than in the last report. Thirty-year rates averaged 17 BPSÂ less than at the same point in 2013.
At 95 BPS, the spread between 15- and 30-year mortgages was slightly more narrow than 96 BPS in the previous report. But it widened 2 BPS from one year prior.
A look at the week’s Treasury market activity suggests fixed mortgage rates are likely to be around 7 BPS lower in the next Mortgage Market Index report.
Data from the Department of the Treasury indicate that the 10-year Treasury yield averaged 2.41 percent for the week, while it closed Friday at 2.34 percent.
