New weekly mortgage activity accelerated to the highest level in more than seven months, and it was jumbo loan business that came in with the biggest gain.
A 21 percent surge from a week earlier left the U.S. Mortgage Market Index from OpenClose and Mortgage Daily at nearly 154 for the week ended Dec. 19.
The index, which reflects average per-user rate locks by clients of OpenClose, hasn’t been this high since the week ended May 15, when it was more than 154.
The index has fallen, however by 13 percent compared to the same week a year earlier. Figures from one year prior were revised to reflect statistics from the same data provider.
Jumbo rate locks were up 38 percent from the week ended Dec. 11, the biggest week-over-week gain of any category. Jumbo business has retreated, though, by a third from the same week last year. Jumbo share widened to 8.7 percent from 7.6 percent in the last report but thinned from 11.3 percent in the year-earlier report.
Interest rates on jumbo mortgages were 19 basis points lower than on conforming loans. The jumbo conforming spread was fatter than a negative 16 BPS seven days previous but swung from a positive seven BPS one year previous.
Refinance activity increased 27 percent from one week prior and was 16 percent stronger than in the week ended Dec. 19, 2014.
Refinances accounted for 80.8 percent of the most-recent activity. Refinance share was up from 76.7 percent a week earlier and 60.7 percent a year earlier. The latest share was comprised of a 49.1 percent rate-term share and a 31.7 percent cashout share.
Also up 27 percent from the last report were rate locks for mortgages insured by the Federal Housing Administration. FHA business has risen by nearly two-thirds over the past year — the biggest year-over-year gain of any category. FHA share widened to 24.4 percent from 23.3 percent and ballooned compared to 12.9 percent this week in 2014.
Next up were rate locks for conventional loans, up 19 percent on a week-over-week basis but down 24 percent on a year-over-year basis.
Rate locks for purchase financing ascended 19 percent from the last report but slipped four percent from this week last year.
The only category to see a decline was adjustable-rate mortgages, with ARM activity dropping 13 percent. ARM business was 21 percent weaker than in the year-prior week. ARM share fell to 9.7 percent from 13.5 percent and was also down from 10.8 percent 12 months ago.
Conforming 30-year fixed rates averaged 3.97 percent, two BPS higher than last week but 24 BPS lower than this week last year.
Rates on 15-year loans were 75 BPS less than on their 30-year counterparts. The spread thinned from 76 BPS a week earlier and 84 BPS a year earlier.
Fixed rates are probably going to be around four BPS lower in the next Mortgage Market Index report based on an analysis of Treasury market activity by Mortgage Daily.
