PhotoMortgage applications moved lower in the week that included an adjustment for the Memorial Day holiday.

According to the Mortgage Bankers Association’s Weekly Mortgage Applications Survey, applications dropped 2.4% for the week ending June 10.

The Refinance Index was down 1%, although the refinance share of mortgage activity rose to 55.3% of total applications from 53.8% the week before. The adjustable-rate mortgage (ARM) share of activity increased to 5.3% of total applications.

The FHA share of total applications fell to 11.8% from 13.0% the prior week, the VA share slipped to 11.1% from 11.5%, and the USDA share of total applications was down to 0.6% from 0.7%.

Contract interest rates

  • The average contract interest rate for 30-year fixed-rate mortgages (FRMs) with conforming loan balances ($417,000 or less) fell four basis points -- from 3.83% to 3.79% -- its lowest level since January 2015, with points decreasing to 0.32 from 0.33 (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) dropped to its lowest level since last month -- to 3.75%, from 3.81% -- with points increasing to 0.26 from 0.25 (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 plunged 10 basis points to 3.61%, its lowest level since May 2013, with points increasing to 0.27 from 0.23 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.
  • The average contract interest rate for 15-year FRMs fell to 3.06%, its lowest level since May 2016, from 3.11%, with points decreasing to 0.34 from 0.35 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.
  • The average contract interest rate for 5/1 ARMs decreased nine basis points to 2.87% -- its lowest level since May 2015 -- with points decreasing to 0.26 from 0.29 (including the origination fee) for 80 percent 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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