PhotoMortgage applications moved higher last week, ending two straight weeks of declines.

The Mortgage Bankers Association’s Weekly Mortgage Applications Survey shows an increase of 2.8% in the week ending August 26 in it's Market Composite Index, which measures mortgage loan application volume.

The Refinance Index shot up 4.0% from the previous week, taking the refinance share of mortgage activity to 63.5% of total applications from 62.4% a week earlier.

The adjustable-rate mortgage (ARM) share of activity dipped to 4.5% of total applications, the FHA share increased to 9.7% from 8.9% the previous week, the VA share rose to 12.5% from 12.4%, and the USDA share of total applications was unchanged at 0.6%.

Contract interest rates

  • The average contract interest rate for 30-year fixed-rate mortgages (FRMs) with conforming loan balances ($417,000 or less) was unchanged at 3.67%, with points decreasing to 0.33 from 0.34 (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) inched up one basis point from 3.62% to 3.63%, with points decreasing to 0.27 from 0.35 (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 increased to 3.54% from 3.53%, with points increasing to 0.36 from 0.34 (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 up one basis point to 2.96%, with points decreasing to 0.31 from 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 jumped to 2.90% from 2.84%, with points decreasing to 0.24 from 0.37 (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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