PhotoA rebound in mortgage applications from the previous week's decline.

The Mortgage Bankers Association reports applications were up 2.7 percent in the week ending April 21, following a 1.8% dip a week earlier.

The Refinance Index shot up 7% taking the refinance share of mortgage activity to 44.0% of total applications from 42.4% the previous week. The average loan size for refinance applications increased to its highest level since September 2016, $266,900.

The adjustable-rate mortgage (ARM) share of activity increased to 8.7% of total applications, the FHA share fell to 10.0% from 11.0% percent the week before, the VA share of total applications inched down to 10.9% from 11.1%, and the USDA share of total applications went to 0.8% from 1.0% a week earlier.

Contract interest rates

  • The average contract interest rate for 30-year fixed-rate mortgages (FRMs) with conforming loan balances ($424,100 or less) slipped two basis points -- from 4.22% to 4.20% -- its lowest level since November 2016, with points increasing to 0.37 from 0.35 (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 $424,100) was unchanged at 4.15%, with points increasing to 0.27 from 0.23 (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 fell six basis points to 4.03%, with points decreasing to 0.34 from 0.36 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.
  • The average contract interest rate for 15-year FRMs went to its lowest level since November 2016 -- 3.46%, from 3.50%, with points increasing to 0.50 from 0.41 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.
  • The average contract interest rate for 5/1 ARMs fell five basis points to 3.22% -- its lowest level since November 2016, with points decreasing to 0.18 from 0.26 (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.

 

 


Share your Comments