PhotoAfter falling last week for the first time in four weeks, mortgage applications are on the rise again.

The Mortgage Bankers Association reports applications were up 1.4% in the week ending June 30.

The Refinance Index, however, dipped 0.4% as the refinance share of mortgage activity fell to 44.9% of total applications from 45.6% the week before.

The adjustable-rate mortgage (ARM) share of activity rose to 7.2% of total applications, the FHA share edged down to 10.2% from 10.3%, the VA share was unchanged at 10.3%, and the USDA share of total applications rose to 0.8% from 0.7% the week prior.

Contract interest rates

  • The average contract interest rate for 30-year fixed-rate mortgages (FRMs) with conforming loan balances ($424,100 or less) rose seven basis points -- from 4.13% to 4.20% -- its highest level since May, with points decreasing to 0.31 from 0.32 (including the origination fee) for 80% loan-to-value ratio (LTV) loans. The effective rate increased from last week.
  • The average contract interest rate for 30-year FRMs with jumbo loan balances (greater than $424,100) inched up to its highest level since May -- 4.10%, from 4.09%, with points increasing to 0.23 from 0.20 (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 was up two basis points to 4.04%, with points decreasing to 0.33 from 0.41 (including the origination fee) for 80% LTV loans. The effective rate remained unchanged from last week.
  • The average contract interest rate for 15-year FRMs moved to 3.43%, its highest level since May, from 3.39%, with points decreasing to 0.32 from 0.33 (including the origination fee) for 80% LTV loans. The effective rate increased from last week.
  • The average contract interest rate for 5/1 ARMs jumped eight basis points to its highest level since March -- 3.37%, with points decreasing to 0.22 from 0.25 (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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