PhotoMortgage applications plunged 12% last week from two weeks earlier.

The results from the Mortgage Bankers Association’s survey for the week ending December 30 include adjustments to account for the Christmas holiday.

The Refinance Index was down 22% from two weeks ago, although the refinance share of mortgage activity inched up to 52.2% of total applications from 51.8% the previous week.

The adjustable-rate mortgage (ARM) share of activity decreased to 5.4% of total applications, the FHA share went to 11.6% from 10.7% a week earlier, the VA share slipped to 12.3%, and the USDA share of total applications rose to 1.1% 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 ($417,000 or less) declined six basis points -- to 4.39% from 4.45% -- with points increasing to 0.43 from 0.39 (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) dipped from 4.41% to 4.37%, with points increasing to 0.44 from 0.21 (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 4.22%, with points decreasing to 0.34 from 0.44 (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 down six basis points to 3.64%, with points increasing to 0.38 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 plunged to 3.28% from 3.41%, with points increasing to 0.42 from 0.29 (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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