New home-lending activity turned solidly higher this past week, and it was government mortgage programs that saw the biggest week-over-week gain.
An indication of upcoming single-family loan originations,
the U.S. Mortgage Market Index from Mortgage Daily, was 160 in the week ended Aug. 25.
The index, which is based on rate-lock volume at OpenClose, increased 9 percent from the preceding seven-day period. No seasonal adjustments are made to the numbers.
Compared to the same seven days in 2016, mortgage activity has declined 5 percent.
A 17 percent increase from the week ended Aug. 18 for government business was the strongest improvement of any category. Government rate locks were up by a fifth from the same week last year. Government share of this week’s activity was 38.6 percent, wider than 36.2 percent a week earlier and 30.5 percent a year earlier. The most-recent share consisted of a 27.0 percent FHA share and an 11.6 percent VA share.
The Purchase MMI moved up a 10th from the last report to 103. Purchase business was even up from a year ago — by 2 percent.
Next up were rate locks for refinances, which climbed 8 percent but were down by 15 percent from the week ended Aug. 26, 2016. Refinance share thinned to 35.9 percent from 36.2 percent the prior week and 40.1 percent a year prior. This week’s share was was comprised of a 17.1 percent rate-term share and an 18.8 percent cashout share.
A 5 percent increase in the Conventional MMI left that index at 98. Conventional activity, though, has diminished by 16 percent from the year-earlier report.
Rate locks for jumbo mortgages inched up a percent from the previous week but have plunged 28 percent from the same week in 2016 — the worst year-over-year deterioration of any category. Jumbo share was trimmed to 6.7 percent from 7.3 percent the prior week and cut from 8.9 percent a year prior.
At 6 basis points, the jumbo-conforming spread was thinner than 7 BPS in the last report and in the report from the same week in 2016.
Rate locks for adjustable-rate mortgages slowed by 1 percent from last week. But the category has skyrocketed 80 percent versus the same week last year — more than any other category. ARM share was more narrow at 9.5 percent than 10.5 percent a week ago.
But ARM share stands much wider than 5.0 percent fifty-two weeks ago.
