PhotoMortgage applications are lower after posting gains in the two previous weeks.

The latest survey by the Mortgage Bankers Association shows applications were down 2.8% in the week ending July 28.

The Refinance Index, meanwhile, dropped 4% from the previous week taking the refinance share of mortgage activity down to 45.5% percent of total applications from 46.0% a week earlier.

The adjustable-rate mortgage (ARM) share of activity was 6.6% of total applications, the FHA share inched up to 10.3% of total applications from 10.2%, the VA slipped 10.1% from 10.5%, and the USDA share was unchanged at 0.8%.

Contract interest rates

  • The average contract interest rate for 30-year fixed-rate mortgages (FRMs) with conforming loan balances ($424,100 or less) was unchanged at 4.17%, with points decreasing to 0.36 from 0.40 (including the origination fee) for 80% loan-to-value ratio (LTV) loans. The effective rate decreased from last week.
  • The average contract interest rate for 30-year FRMs with jumbo loan balances (greater than $424,100) rose five basis points -- to 4.11% from 4.06% -- with points increasing to 0.25 from 0.24 (including the origination fee) for 80% LTV loans. The effective rate increased from last week.
  • The average contract interest rate for 30-year FRMs backed by the FHA inched up from 4.05% to 4.07%, with points decreasing to 0.35 from 0.44 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.
  • The average contract interest rate for 15-year FRMs held steady at 3.45%, with points decreasing to 0.44 from 0.45 (including the origination fee) for 80% LTV loans. The effective rate remained unchanged from last week.
  • The average contract interest rate for 5/1 ARMs edged up one basis point to 3.30%, with points increasing to 0.29 from 0.26 (including the origination fee) for 80% LTV loans. The effective rate increased from last week.

The survey covers over 75% of all U.S. retail residential mortgage applications.


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