A modest decline in mortgage rates helped loan originators eke out a gain in weekly activity. Refinances delivered the strongest performance.
A 1 percent increase from a week earlier left the U.S. Mortgage Market Index from LoanSifter/Optimal Blue and Mortgage Daily at 162 for the week ended Sept. 26.
The index, which is a reflection of average per-user pricing inquiries by clients of LoanSifter, was down 19 percent from a year earlier.
The biggest gain from the week ended Sept. 19 — 3.8 percent — was made by refinance activity. Compared to the same week in 2013, refinances were off 23 percent.
Refinances accounted for 48.4 percent of the latest weekly activity. Refinance share widened from 47.0 percent in the prior report but was thinner than 50.7 percent in the year-earlier report. Refinance share was made up of a 32.1 percent rate-term share and a 16.3 percent cashout share.
Jumbo inquiries increased by 3.6 percent from the previous week and were up 15 percent from the week ended Sept. 27, 2013. Jumbo share was 11.7 percent, fattening from 11.4 percent seven days prior and 8.3 percent 12 months prior.
Interest rates on jumbo mortgages were 4 basis points less than conforming loans, about the same as in the previous week. The jumbo-conforming spread, however, swung from a positive 31 BPS in the same week last year.
A less than 1 percent week-over-week increase was recorded for Federal Housing Administration-insured loan inquiries. FHA activity, however, was off 14 percent on a year-over-year basis. FHA share was mostly unchanged from seven days earlier at 15.6 percent but widened from 14.7 percent a year prior.
Adjustable-rate mortgage activity was flat compared to the previous report and fell 10 percent from the year-earlier report. ARM share slipped to 11.9 percent from 12.0 percent but was wider than 10.6 percent 12 months previous.
A less than 1 percent decline was reported for conventional business, while the category tumbled 27 percent from the same week in 2013 — the largest year-over-year drop.
The worst week-over-week performance was delivered by purchase financing, which receded 2 percent from the previous report and was down 15 percent from the year-earlier report.
Thirty-year fixed rates averaged 4.522 percent, edging down from 4.547 percent seven days prior and 4.577 percent 12 months prior.
Fifteen-year mortgages were priced 90 BPS lower than 30-year rates. The spread widened from 87 BPS in the last report but fell from 92 BPS one year prior.
Mortgage rates are likely to be near their current levels in the next report based on an analysis of Treasury market activity.
During the week covered by the Mortgage Market Index report, the 10-year Treasury yield averaged 2.55 percent, based on Department of the Treasury data. The 10-year yield closed at 2.54 percent Friday.
