PhotoMortgage applications plunged 11.2% in the week ending July 22, according to the Mortgage Bankers Association’s Weekly Mortgage Applications Survey.

It was even worse for the Refinance Index, which was down 15% from the previous week, taking the refinance share of mortgage activity to 61.1% of total applications from 64.2% a week earlier.

The adjustable-rate mortgage (ARM) share of activity fell to 4.7% of total applications, the FHA share moved to 10.1% from 9.9%, the VA share was 11.9%, and the USDA share of total applications rose to 0.6% from 0.5% 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) rose four basis points -- from 3.65% to 3.69% -- with points unchanged at 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) inched up to 3.67% from 3.66%, with points unchanged at 0.32 (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 moved to 3.56% from 3.53%, with points increasing to 0.35 from 0.30 (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 to 2.94% a gain of four basis points, with points increasing to 0.32 from 0.31 (including the origination fee) for 80% LTV loans. The effective rate increased from last week.
  • The average contract interest rate for 5/1 ARMs shot up from 2.86% to 2.96%, with points increasing to 0.30 from 0.29 (including the origination fee) for 80% LTV loans. The effective rate increased from last week.

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


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