PhotoAn increase in mortgage and Treasury rates pushed mortgage applications lower again last week.

 

Data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey show applications were down 1.5% in the week ending May 15 -- the fourth consective decline.

 

“Mortgage rates increased last week, and Treasury rates increased to a recent high at mid week before falling at the end of the week,” said Mike Fratantoni, MBA’s Chief Economist. “Overall purchase activity fell for the week, along with conventional refinance volume, but government refinance volume increased. The level of purchase applications remained 11% higher than the same week last year, but the drop this week may indicate borrowers being wary of the recent run up in mortgage rates.”

 

The Refinance Index increased 0.3%, sending the refinance share of mortgage activity up to 52% of total applications from 51% the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 6.4% of total applications.

 

Contract interest rates

 

  • The average contract interest rate for 30-year fixed-rate mortgages (FRMs) with conforming loan balances ($417,000 or less) rose 4 basis points -- from 4.00% to 4.04%, its highest level since December 2014, with points decreasing to 0.32 from 0.36 (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 $417,000) increased to 4.04% from 3.99%, with points dropping to 0.25 from 0.33 (including the origination fee) for 80% LTV loans. The effective rate increased from last week.
  • The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA was up 4 basis points 3.80%, with points decreasing to 0.06 from 0.14 (including the origination fee) for 80% LTV loans. The effective rate increased from last week.
  • The average contract interest rate for 15-year fixed-rate mortgages inched up to 3.26% from 3.23%, with points slipping to 0.30 from 0.40 (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 dipped 1 basis point to 2.99%, with points decreasing to 0.45 from 0.46 (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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