Weekly Mortgage Market Index Drops, Refis Most

DALLAS — (June 27, 2016) As rates inched higher over the past week, new refinance activity tumbled. But recent developments in the United Kingdom are likely to reverse the latest activity.

The U.S. Mortgage Market Index from OpenClose and Mortgage Daily for the week ended June 24 was 157, an 11 percent decline from the week-earlier report.

Compared to the report from the same week a year earlier, the index — a measure of average per-user rate locks by clients of OpenClose — increased by 12 percent.

Refinance activity slowed 14 percent from the week ended June 17, the largest week-over-week decline of any category. Refinance share was 68 percent, thinning from 70 percent in the previous report.

A 13 percent week-over-week retreat was recorded for rate locks on mortgages insured by the Federal Housing Administration. FHA share was little changed at 25.2 percent versus 25.6 percent the prior week.

Conventional mortgage rate locks retreated 11 percent from the last report.

Rate locks for purchase financing slowed 9 percent for the week.

A 5 percent improvement was recorded for adjustable-rate mortgage activity. ARM share was fatter at 9 percent compared to 8 percent a week earlier.

With a 13 percent increase from the previous report, jumbo rate locks had the best week-over-week gain. Jumbo share widened to 8 percent from 7 percent.

The jumbo-conforming spread widened to 7 basis points from 3 BPS in the last report.

Fixed-rates on 30-year mortgages averaged 3.56 percent, 2 BPS higher than in the last report.

A 73-basis-point spread between 15- and 30-year rates was no different than a week previous.