Mortgage applications rose 5.8 percent over the week, according to data gathered in the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey. The MBA’s Refinance Index grew 4 percent, as well, while the Purchase Index grew 45 percent.
The refinance share of mortgage activity, however, decreased to 51.2 percent of total applications from 52.2 percent the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 5.5 percent of total applications.
The FHA share of total applications also increased to 11.7 percent from 11.6 percent the previous week, while the VA share of total applications increased to 12.8 percent from 12.3 percent the previous week. The USDA share of total applications decreased to 0.9 percent from 1.1 percent the previous week.
According to data from the survey, the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) decreased to 4.32 percent from 4.39 percent, with points decreasing to 0.41 from 0.43 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans. The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,000) decreased to 4.27 percent from 4.37 percent, with points decreasing to 0.31 from 0.44 (including the origination fee) for 80 percent LTV loans. The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA decreased to 4.08 percent from 4.22 percent, with points increasing to 0.35 from 0.34 (including the origination fee) for 80 percent LTV loans.
The average contract interest rate for 15-year fixed-rate mortgages, in addition, decreased to 3.56 percent from 3.64 percent, with points increasing to 0.42 from 0.38 (including the origination fee) for 80 percent LTV loans. The average contract interest rate for 5/1 ARMs increased to 3.32 percent from 3.28 percent, with points increasing to 0.46 from 0.42 (including the origination fee) for 80 percent LTV loans.
