Mortgage activity and interest rates were little changed this past week, though inquiries for adjustable-rate mortgages softened.
For the week ended Nov. 14, the U.S. Mortgage Market Index from LoanSifter/Optimal Blue and Mortgage Daily was 166.
The index, which reflects average per-user pricing inquiries by clients of LoanSifter, retreated 2 percent from a week earlier and a year earlier.
A 5 percent decline from the week ended Nov. 7 was recorded for ARM business, while the decline was 7 percent compared to the same week last year. ARM share slipped to 10.9 percent from 11.3 percent in the previous report and 11.5 percent in the year-earlier report.
Inquiries for conventional loans dropped more than 3.3 percent for the week and were off by 8 percent compared to the week ended Nov. 15, 2013.
Similarly, refinance activity slowed nearly 3.3 percent but was 5 percent stronger than one year prior. Refinance share declined to 53.9 percent from 54.8 percent but was up from 50.4 percent 12 months earlier. The most-recent share consisted of a 36.9 percent rate-term share and a 17.0 percent cashout share.
A less than 1 percent week-over-week decline was recorded for jumbo mortgages, though jumbo pricing inquiries soared 37 percent from the same week in 2013. Jumbo share widened to 10.9 percent from 10.7 percent in the previous report and 7.8 percent in the year-prior report.
Interest rates on jumbo mortgages were 9 basis points more than on conforming loans, thinning from a 10-basis-point jumbo-conforming spread. The spread was far more narrow than 23 BPS one year previous.
Pricing inquiries for purchase financing rose less than a percent but have fallen 9 percent over the past 12 months.
Inquiries for loans insured by the Federal Housing Administration inched up less than a percent for the week and were off 11 percent for the 12-month period. FHA share rose to 14.8 percent from 14.5 percent but was far more narrow than 16.5 percent 12 months earlier.
Conventional 30-year fixed rates were hardly changed from the last report at 4.364 percent but have improved from 4.558 percent in the year-earlier report.
Fifteen-year borrowers were quoted rates that were 89 BPS better than on 30-year mortgages, a little better than the prior week’s 88 BPS but worse than 93 BPS one year prior.
Fixed rates could be around 3 BPS higher in the next report based on Treasury market activity.
Data from the Department of the Treasury indicate that the yield on the 10-year Treasury note — which is tracked by fixed mortgage rates — averaged 2.35 percent during the period covered by the Mortgage Market Index. The 10-year yield closed Friday at 2.32 percent.
