After rising the previous week for the first time in 8 weeks, applications for mortgages have resumed the downward trek.
Applications were down 5.5% for the week ending June 12, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey.
“Rising rates continue to create volatility in weekly mortgage applications activity,” said Mike Fratantoni, MBA’s Chief Economist. “The 10-year Treasury hit 2.5% percent last week and our survey’s 30-year fixed rate of 4.22% is at its highest level since October 2014,” said Mike Fratantoni, MBA’s Chief Economist.
The Refinance Index dropped 7% from the previous week to the lowest level since January, pushing the refinance share of mortgage activity down to 48.5% of total applications. The FHA share of total applications slipped to 14.2% from 14.3% the week prior, the VA share of total applications was unchanged at 11.5$, and the USDA share dropped to 0.9% from 1.1% 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) was up 5 basis points -- from 7.17% to 4.22%, with points increasing to 0.46 from 0.38 (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) rose to 4.18% from 4.15%, with points decreasing to 0.36 from 0.37 (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 jumped 10 basis points to 4.00%, with points increasing to 0.20 from 0.19 (including the origination fee) for 80% LTV loans. The effective rate increased from last week.
- The average contract interest rate for 15-year FRMs climbed to 3.43% from 3.37%, with points increasing to 0.33 from 0.32 (including the origination fee) for 80% LTV loans. The effective rate increased from last week.
- The average contract interest rate for 5/1 ARMs rose 9 basis points to 3.15%, with points increasing to 0.52 from 0.50 (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.