Mortgage applications rose 3.1 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 2 percent.
The refinance share of mortgage activity increased to 45.6 percent of total applications from 45.4 percent the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 8.2 percent of total applications—the highest level since October 2014.
The FHA share of total applications decreased, however, to 11.1 percent from 11.8 percent the previous week. The VA share of total applications decreased, also, to 11.1 percent from 11.6 percent the previous week. The USDA share of total applications remained unchanged at 0.9 percent from the previous week.
According to data from the survey, the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($424,100 or less) increased to its highest level since April 2014, 4.46 percent, from 4.36 percent, with points decreasing to 0.37 from 0.44 (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 $424,100) increased to its highest level since April 2014, 4.44 percent, from 4.27 percent, with points increasing to 0.28 from 0.26 (including the origination fee) for 80 percent LTV loans. The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA increased to its highest level since January 2014, 4.29 percent, from 4.18 percent, with points increasing to 0.39 from 0.32 (including the origination fee) for 80 percent LTV loans.
The average contract interest rate for 15-year fixed-rate mortgages, in addition, increased to 3.66 percent from 3.57 percent, with points increasing to 0.45 from 0.36 (including the origination fee) for 80 percent LTV loans. The average contract interest rate for 5/1 ARMs decreased to 3.45 percent from 3.48 percent, with points increasing to 0.24 from 0.20 (including the origination fee) for 80 percent LTV loans.
Source: Mortgage Bankers Association (MBA)
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