PhotoAnother drop in applications for mortgages -- the second in as many weeks.

The Mortgage Bankers Association (MBA) reports mortgage applications were down 4.8% in the week ending February 26 from the previous week, which included an adjustment for the President’s Day holiday.

The Refinance Index fell 7%, taking the refinance share of mortgage activity down to 58.6% of total applications -- its lowest level since January.

The adjustable-rate mortgage (ARM) share of activity dipped to 5.6% of total applications, the FHA share was unchanged from 12.0%, the VA share was 12.1%, and the USDA share of total applications held steady 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) dipped two basis points -- from 3.85% to 3.83%, with points decreasing to 0.39 from 0.42 (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) dropped to 3.75% from 3.80%, with points increasing to 0.31 from 0.25 (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 five basis points to 3.67%, with points decreasing to 0.40 from 0.45 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.
  • The average contract interest rate for 15-year FRMs inched up to 3.13% from 3.12%, with points decreasing to 0.31 from 0.40 (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 3.02% from 3.07%, with points increasing to 0.31 from 0.30 (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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