PhotoApplications for mortgages continue to yo-yo, falling this past week after rising the week before.

According to the Mortgage Bankers Association, applications dropped 4.1% during the week ending May 27.

The Refinance Index fell 4%, although the refinance share of mortgage activity increased to 54.3% of total applications from 53.7% the previous week.

The adjustable-rate mortgage (ARM) share of activity was down to 5.0% of total applications from 5.7% a week earlier, the FHA share slipped to 12.5% from 12.7%, the VA share rose to 12.0% from 11.5% a week earlier, and the USDA share was unchanged at 0.7% the week prior.

Contract interest rates

  • The average contract interest rate for 30-year fixed-rate mortgages (FRMs) with conforming loan balances ($417,000 or less) was unchanged at 3.85%, with points decreasing to 0.36 from 0.37 (including the origination fee) for 80% loan-to-value ratio (LTV) loans. The effective rate was unchanged from last week.
  • The average contract interest rate for 30-year FRMs with jumbo loan balances (greater than $417,000) slipped one basis point -- to 3.81% from 3.82% --¬†with points increasing to 0.35 from 0.27 (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 down to 3.65% from 3.70%, with points decreasing to 0.26 from 0.27 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.
  • The average contract interest rate for 15-year FRMs jumped six basis points to 3.12%, with points unchanged at 0.40 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.
  • The average contract interest rate for 5/1 ARMs dropped to 3.00% from 3.09%, with points increasing to 0.44 from 0.31 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.

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


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