Mortgage applications rose 3.3 percent over the last week, according to data gathered in the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey, with the average mortgage loan size hitting a survey high of $313,000. The MBA’s Refinance Index grew 5 percent, as well, while the Purchase Index grew 15 percent.
The refinance share of mortgage activity also increased to 45.4 percent of total applications from 45.1 percent the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 7.7 percent of total applications—the highest level since October 2014.
The FHA share of total applications decreased, however, to 11.8 percent from 12.3 percent the previous week, while the VA share of total applications decreased to 11.6 percent from 11.7 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 4.36 percent from 4.30 percent, with points increasing to 0.44 from 0.38 (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 4.27 percent from 4.23 percent, with points increasing to 0.26 from 0.25 (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 4.18 percent from 4.07 percent, with points decreasing to 0.32 from 0.37 (including the origination fee) for 80 percent LTV loans.
The average contract interest rate for 15-year fixed-rate mortgages, in addition, increased to 3.57 percent from 3.51 percent, with points remaining unchanged at 0.36 (including the origination fee) for 80 percent LTV loans. The average contract interest rate for 5/1 ARMs increased to 3.48 percent from 3.35 percent, with points decreasing to 0.20 from 0.29 (including the origination fee) for 80 percent LTV loans.
Source: Mortgage Bankers Association (MBA)
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