PhotoMortgage applications registered their second straight decline in the week ending February 17, according to the Mortgage Bankers Association, falling 2% from a week earlier.

The Refinance Index was down 1% from a week earlier, with the refinance share of mortgage activity was down 0.7% to 46.2% of total applications -- the lowest level since November 2008.

The adjustable-rate mortgage (ARM) share of activity fell to 7.3% of total applications, the FHA share was 11.6%, the VA share rose to 12.1% from 11.8% the previous week, and the USDA was 0.9%.

Contract interest rates

  • The average contract interest rate for 30-year fixed-rate mortgages (FRMs) with conforming loan balances ($424,100 or less) rose four basis points -- to 4.36% from 4.32% -- with points increasing to 0.35 from 0.34 (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) went from 4.28% to 4.29%, with points increasing to 0.28 from 0.27 (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 inched up two basis points to 4.14%, with points increasing to 0.33 from 0.31 (including the origination fee) for 80% LTV loans. The effective rate increased from last week.
  • The average contract interest rate for 15-year FRMs rose to 3.56% from 3.55%, with points decreasing to 0.36 from 0.37 (including the origination fee) for 80% LTV loans. The effective rate increased from last week.
  • The average contract interest rate for 5/1 ARMs dipped three basis points to 3.31%, with points increasing to 0.31 from 0.19 (including the origination fee) for80% LTV loans. The effective rate increased from last week.

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


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