PhotoDeclines in purchases and refinancings drove mortgage applications lower last week.

The Weekly Mortgage Applications Survey conducted by the Mortgage Bankers Association shows overall applications dipped 3.4% in the week ending May 26.

The seasonally adjusted Purchase Index fell 1%, with the unadjusted Purchase Index down 3% from a week earlier, but up 7% from the same week a year ago.

The Refinance Index plunged 6%, taking the refinance share of mortgage activity to 43.2% of total applications from 43.9% the previous week.

The adjustable-rate mortgage (ARM) share totaled 7.7% of total applications, the FHA share slipped to 10.5% from 10.8% the week before, the VA share of total applications rose to 10.8% from 10.5%, 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 4.17%, with points decreasing to 0.32 from 0.39 (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 $424,100) held steady at 4.11%, with points decreasing to 0.30 from 0.31 (including the origination fee) for 80% LTV loans. The effective rate remained unchanged from last week.
  • The average contract interest rate for 30-year FRMs backed by the FHA fell to 4.03% from 4.07%, with points decreasing to 0.32 from 0.34 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.
  • The average contract interest rate for 15-year FRMs was down to 3.42% from 3.45, with points increasing to 0.39 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 dropped from 3.27% to 3.22%, with points decreasing to 0.33 from 0.35 (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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