Mortgage activity slowed heading into the holiday weekend, though there was an up tick from the same week last year. Jumbo business, however, has nearly tripled from a year earlier, while adjustable-rate activity more than tripled.
A 28 percent drop from the previous week left the U.S. Mortgage Market Index from LoanSifter/Optimal Blue and Mortgage Daily at 121 for the week ended Nov. 28.
However, the index — which is a reflection of per-user product-and-pricing inquiries by LoanSifter clients — moved up 3 percent from the same week last year.
Out front of the week-over-week decline were inquiries for loans insured by the Federal Housing Administration. FHAÂ business sank a third compared to the previous report and was down 36 percent from the year-earlier report.
FHAÂ share narrowed to 14.1 percent from 15.1 percent and tumbled from 22.6 percent in the week ended Nov. 29, 2013.
Next was purchase financing activity, which sank 31 percent from the week ended Nov. 21. Purchase inquiries were off 15 percent from a year earlier.
Inquiries for jumbo mortgages dropped 29 percent on a week-over-week basis but have soared 179 percent on a year-over-year basis. Jumbo share, meanwhile, slipped to 10.7 percent from 10.9 percent but has substantially widened from 4.0 percent as of the same week last year.
Jumbo loans became much more expensive this week, with the spread between conforming and jumbo mortgages more than doubling from the previous report to 15 basis points. The jumbo-conforming spread was 37 BPS one year prior.
Conventional activity slid more than 27 percent from the last report but was 6 percent stronger than the year-earlier report.
Inquiries for adjustable-rate mortgages diminished nearly 27 percent but soared 204 percent from 12 months earlier. ARM share widened to 11.4 percent from 11.1 percent seven days previous and was just 3.9 percent in the same week last year.
Refinance activity had the smallest week-over-week decline: 26 percent. But refinances were up a quarter from one year prior.
Refinance share rose to 55.5 percent from 53.9 percent and was also fatter than 45.8 percent in the same week during 2013. The latest refinance share consisted of a 39.2 percent rate-term share and a 19.7 percent cashout share.
Average 30-year fixed rates were 4.308 percent, increasing 3 BPS from the last report but 65 BPS better than the year-earlier report.
A 94-basis-point rate discount for 15-year mortgages was wider than the 90-basis-point spread as of seven days earlier but substantially thinner than the 135 BPS in place 12 months earlier.
Mortgage rates are likely to be around 7 BPS lower in the next Mortgage Market Index report based on Treasury market activity.
The 10-year Treasury yield, which is tracked by fixed mortgage rates, averaged 2.25 percent during the period covered by the Mortgage Market Index report, based on data from the Department of the Treasury. The 10-year yield closed Friday at 2.18 percent.
