PhotoMortgage applications have given back all of last week's advance -- and then some.

A week after reporting a 2.4% gain, the Mortgage Bankers Association says applications were down 4.1% in the week ending May 12.

The Refinance Index was off 6% from the week before, which took the refinance share of mortgage activity from 41.9% of total applications to 41.1% -- the lowest level since September 2008.

The adjustable-rate mortgage (ARM) share of activity fell to 8.1% of total applications., the FHA share rose to 10.6% from 10.5% the prior week, the VA share slipped to 10.7% from 10.8%, and the USDA share was unchanged at 0.8%.

Contract interest rates

  • The average contract interest rate for 30-year fixed-rate mortgages (FRMs) with conforming loan balances ($424,100 or less) was unchanged at 4.23%, with points increasing to 0.37 from 0.31 (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 $424,100) inched up to 4.23% from 4.22%, with points increasing to 0.30 from 0.28 (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 was up two basis points -- to 4.11% from 4.09%, with points increasing to 0.37 from 0.28 (including the origination fee) for 80% LTV loans. The effective rate increased from last week.
  • The average contract interest rate for 15-year FRMs went from 3.50% to 3.51%, with points decreasing to 0.33 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 dropped six basis points to 3.30%, with points increasing to 0.21 from 0.15 (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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