PhotoAfter dropping during the week that included the Fourth of July holiday, mortgage applications are on the rise again.

The Mortgage Bankers Association reports loan applications rose 6.3% in the week ending July 14.

The Refinance Index shot up 13%, sending the refinance share of mortgage activity to 44.7% of total applications from 42.1% a week earlier.

The adjustable-rate mortgage (ARM) share of activity was unchanged at 6.7% of total applications, the FHA share inched up to 10.7% from 10.4%, the VA share dropped to 10.7% from 11.5% and the USDA share of total applications was unchanged at 0.7% prior.

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 4.22%, with points decreasing to 0.31 from 0.40 (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) dipped to 4.18% from 4.19%, with points remaining unchanged at 0.30 (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 was down two basis points 4.10% from 4.12%, with points decreasing to 0.30 from 0.40 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.
  • The average contract interest rate for 15-year FRMs edged down to 3.48% from 3.50%, with points decreasing to 0.39 from 0.45 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.
  • The average contract interest rate for 5/1 ARMs held steady at 3.32%, with points decreasing to 0.21 from 0.31 (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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