PhotoIt wasn't by much, but mortgage applications rose last week.

The Mortgage Bankers Association (MBA) reports mortgage applications were up 0.4% in the week ending May 6 -- the first increase in three weeks.

Refinance applications rose 0.5% from the previous week, but the refinance share of mortgage activity slipped to 52.8% of total applications from 52.9% a week earlier.

The adjustable-rate mortgage (ARM) share of activity rose to 5.7% of total applications, the FHA share dropped to 13.0% from 13.5%, the VA share of total applications edged up to 11.7% from 11.5%, and the USDA share of total applications was unchanged at 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 to its lowest level since April 2016 -- 3.82%, from 3.87%, with points decreasing to 0.34 from 0.36 (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) was down five basis points -- from 3.79% to 3.74%, with points unchanged at 0.31 (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 dropped to 3.64% from 3.69%, with points decreasing to 0.25 from 0.33 (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 seven basis points to 3.06%, with points decreasing to 0.33 from 0.36 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.
  • The average contract interest rate for 5/1 ARMs inched up from 2.91% to 2.93%, with points decreasing to 0.22 from 0.30 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.

The survey covers over 75 percent of all U.S. retail residential mortgage applications.


Share your Comments