After inching higher last week, mortgage applications are headed lower.
According to the Mortgage Bankers Association, applications fell 1.6% in the week ending May 13, while refinance applications rose 1%. That pushed the refinance share of mortgage activity to 54.7% of total applications from 52.8% the previous week.
The adjustable-rate mortgage (ARM) share of activity fell to 5.5% of total applications, the FHA share dipped to 12.6% from 13.0%, the VA share came in at 12.2%, and the USDA share of total applications was unchanged at 0.7%.
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 3.82%, with points holding steady at 0.34 (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) remained at 3.74%, with points decreasing to 0.29 from 0.31 (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 slipped one basis point, to 3.63% from 3.64%, with points increasing to 0.28 from 0.25 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.
- The average contract interest rate for 15-year FRMs fell from 3.06% to 3.02%, with points increasing to 0.38 from 0.33 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.
- The average contract interest rate for 5/1 ARMs inched up one basis point to 2.94%, with points increasing to 0.30 from 0.22 (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.