PhotoMortgage applications were lower last week for the second time in three weeks.

According to the Mortgage Bankers Association,  applications were down 2.6% in the week ending June 24.

The Refinance Index fell 2%, while the refinance share of mortgage activity inched up to 58.1% of total applications from 57.7% a week earlier. The adjustable-rate mortgage (ARM) share of activity increased to 5.9%, the FHA dropped to 10.6% from 11.7%, the VA share was 12.2% and the USDA share of total applications rose to 0.7% from 0.6% the week prior.

Contract interest rates

  • The average contract interest rate for 30-year fixed-rate mortgages (FRMs) with conforming loan balances ($417,000 or less) slipped to its lowest level since May 2013 -- 3.75%, from 3.76% -- with points increasing to 0.36 from 0.33 (including the origination fee) for 80% loan-to-value ratio (LTV) loans. The effective rate remained unchanged from last week.
  • The average contract interest rate for 30-year FRMs with jumbo loan balances (greater than $417,000) rose four basis points -- from 3.70% to 3.74% -- with points increasing to 0.34 from 0.28 (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 was unchanged at 3.61%, with points increasing to 0.37 from 0.24 (including the origination fee) for 80% LTV loans. The effective rate increased from last week.
  • The average contract interest rate for 15-year FRMs was down two basis points to 3.02%, with points increasing to 0.38 from 0.36 (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 to 2.88% from 2.92%, with points increasing to 0.30 from 0.21 (including the origination fee) for 80% LTV loans. The effective rate remained unchanged from last week.

The survey covers over 75 percent of all U.S. retail residential mortgage applications.


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