As new mortgage business fell last week — government-insured share sank to the most narrow level since last year, the jumbo-conforming spread thinned, and demand for adjustable-rate mortgages tumbled most.

In the seven days that ended on Aug. 3, the Mortgage Daily U.S. Mortgage Market Index — an indicator of upcoming single-family loan originations — receded 5 percent from the preceding week.

The index, which is determined based on average per-user rate-lock volume by clients of OpenClose, has plunged 28 percent compared to the same week in 2017. No seasonal adjustment are made to the index.

Source: Mortgage Daily