PhotoIt's three declines in three weeks for mortgage applications.

Data from the Mortgage Bankers Association show a 4% drop in mortgage applications in the week ending December 9.

The Refinance Index was down 4% as well, although the refinance share of mortgage activity increased to 57.2% of total applications from 56.2% the previous week.

The adjustable-rate mortgage (ARM) share of activity increased to 6.2% of total applications, the FHA share rose to 11.6% from 11.3% the week before, the VA share slipped to 11.9%, and the USDA share of total applications was unchanged at 0.9%.

Contract interest rates

  • The average contract interest rate for 30-year fixed-rate mortgages (FRMs) with conforming loan balances ($417,000 or less) inched up one basis point from 4.27% to 4.28%, its highest level since October 2014, with points decreasing to 0.36 from 0.37 (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) rose to its highest level since September 2014 -- 4.29%¬†from 4.22% --¬†with points decreasing to 0.24 from 0.29 (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 edged up two basis points to 4.02%, with points decreasing to 0.33 from 0.38 (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 3.52% from 3.53%, with points decreasing to 0.38 from 0.39 (including the origination fee) for 80% LTV loans. The effective rate remained unchanged from last week.
  • The average contract interest rate for 5/1 ARMs fell 11 basis points to 3.28%, with points unchanged at 0.28 (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.


Share your Comments