PhotoFor the second time in as many weeks, applications for mortgages have moved lower.

According to the weekly survey conducted by the Mortgage Bankers Association, applications were down 2.3% in the week ending August 25.

Although the Refinance Index dipped 2% from the previous week, the refinance share of mortgage activity rose to 49.4% from 48.7% the week before.

The adjustable-rate mortgage (ARM) share of activity increased to 6.9% of total applications, the FHA share slipped to 9.7% from 10.1%, the VA share was down to 10.0%, and the USDA share of total applications declined to 0.7% from 0.8% a week earlier.

Contract interest rates

  • The average contract interest rate for 30-year fixed-rate mortgages (FRMs) with conforming loan balances ($424,100 or less) dipped from 4.12% to 4.11% -- its lowest level since last November, with points increasing to 0.43 from 0.39 (including the origination fee) for 80% loan-to-value ratio (LTV) loans. The effective rate remained unchanged from last week.
  • The average contract interest rate for 30-year FRMs with jumbo loan balances (greater than $424,100) inched up one basis point -- to 4.00% from 3.99%, with points decreasing to 0.20 from 0.26 (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 unchanged at 4.02%, with points increasing to 0.41 from 0.37 (including the origination fee) for 80% LTV loans. The effective rate increased from last week.
  • The average contract interest rate for 15-year FRMs dropped to its lowest level since last November -- 3.36%, from 3.40%, with points steady at 0.38 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.
  • The average contract interest rate for 5/1 ARMs was down one basis point to 3.26%, with points increasing to 0.35 from 0.31 (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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