Moving into the holiday weekend, new mortgage business turned sharply lower. After surging in the previous report, jumbo lending activity plummeted.

An indication of upcoming originations, the U.S Mortgage Market Index from Mortgage Daily and OpenClose, was 113 in the week ended Dec. 23.

The index, which is not adjusted for seasonal factors, tumbled 26 percent from a week earlier. But compared to the same week last year, it was up 3 percent.

Source: Mortgage Daily