PhotoAnother decline -- the third in a row -- for mortgage applications.

The weekly mortgage applications survey conducted by the Mortgage Bankers Association shows applications were down 1.2% in the week ending November 4, 2016.

The Refinance Index plunged 3% to its lowest level since May, dragging the refinance share of mortgage activity down to 62.3% of total applications from 62.7% the week before.

The adjustable-rate mortgage (ARM) share of activity rose to 4.5% of total applications, the FHA share was up 11.6% from 11.1%, the VA share of total applications slipped to 12.3% from 12.4%, 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) rose two basis points -- from 3.75% to 3.77%, the highest level since June, with points increasing to 0.38 from 0.36 (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) went to 3.75%, its highest level since June 2016, from 3.74 percent, with points decreasing to 0.27 from 0.32 (including the origination fee) for 80% LTV loans. The effective rate remained unchanged from last week.
  • The average contract interest rate for 30-year FRMs backed by the FHA inched up two basis points to 3.61%, its highest level since June, with points increasing to 0.35 from 0.33 (including the origination fee) for 80% LTV loans. The effective rate increased from last week.
  • The average contract interest rate for 15-year FRMs dipped to 3.03% from 3.04%, 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 five basis points to 2.92%, with points increasing to 0.47 from 0.40 (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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