PhotoFor the third time in as many weeks, applications for mortgages were on the decline.

The Mortgage Bankers Association reports applications were down 3.5% in the week ending July 29.

The Refinance Index fell 4%, sending the refinance share of mortgage activity from 61.1% to 60.7%. The adjustable-rate mortgage (ARM) share was unchanged at 4.7%, the FHA share fell to 9.4% from 10.1%, the VA share rose to 12.1%, and the USDA share of total applications increased to 0.7% from 0.6% the week before.

Contract interest rates

  • The average contract interest rate for 30-year fixed-rate mortgages (FRMs) with conforming loan balances ($417,000 or less) slipped two basis points -- from 3.69% to 3.67% -- with points decreasing to 0.30 from 0.36 (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 $417,000) dipped to 3.65% from 3.67%, with points decreasing to 0.24 from 0.32 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.
  • The average contract interest rate for 30-year FRMs backed by the FHA dropped two basis points to 3.54%, with points decreasing to 0.32 from 0.35 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.
  • The average contract interest rate for 15-year fixed-rate mortgages went to 2.93% from 2.94%, with points increasing to 0.36 from 0.32 (including the origination fee) for 80% LTV loans. The effective rate was unchanged from last week.
  • The average contract interest rate for 5/1 ARMs fell six basis points to 2.90%, with points decreasing to 0.24 from 0.30 (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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