PhotoMortgage applications have fallen for the fourth time in five weeks.

The Mortgage Bankers Association’s Weekly Mortgage Applications Survey shows applications were off 4.0% during the week ending August 12. The Refinance Index was down 4% as well, while the refinance share of mortgage activity inched up to 62.6% of total applications from 62.4% a week earlier

The adjustable-rate mortgage (ARM) share of activity came to 4.6% of total applications; the FHA share of total applications was 9.6%; the VA share of total applications rose to 13.2% from 13.0% a week earlier; and the USDA share of total applications was unchanged at 0.6%.

Contract interest rates

  • The average contract interest rate for 30-year fixed-rate mortgages (FRMs) with conforming loan balances $417,000 or less) inched one basis point lower -- to 3.64% from 3.65%, with points decreasing to 0.31 from 0.34 (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 $417,000) fell from 3.64% to 3.60%, with points decreasing to 0.28 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 was down three basis points to 3.49%, with points decreasing to 0.28 from 0.33 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.
  • The average contract interest rate for 15-year FRMs dipped to 2.90% from 2.93%, with points decreasing to 0.32 from 0.34 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.
  • The average contract interest rate for 5/1 ARMs rose four basis points to 2.85%, with points decreasing to 0.17 from 0.32 (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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