PhotoA down week for mortgage applications -- the first in four weeks.

Figures released by the Mortgage Bankers Association  (MBA) show applications for mortgages dipped 3.2% in the week ending January 27, which includes an adjustment for the Martin Luther King Day holiday.

The Refinance Index was down 1% from the previous week, pushing the refinance share of mortgage activity to 49.4% of total applications from 50.0% the previous week.

The adjustable-rate mortgage (ARM) share of activity rose to 6.4%, the FHA share of total applications fell to 12.1% from 13.6% a week earlier, the VA share inched up to 12.4% from 12.2%, and the USDA share of total applications was unchanged at 0.9%.

Contract interest rates

  • The average contract interest rate for 30-year fixed-rate mortgages (FRMs) with conforming loan balances ($424,000 or less) rose to 4.39% -- its highest level since December 2016 -- from 4.35%, with points increasing to 0.34 from 0.30 (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 $424,000) was up four basis points -- to 4.32% from 4.28% -- with points increasing to 0.34 from 0.31 (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 slipped to 4.17% from 4.19%, with points remaining unchanged at 0.35 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.
  • The average contract interest rate for 15-year FRMs advanced three basis points to 3.61%, with points increasing to 0.33 from 0.28 (including the origination fee) for 80% LTV loans. The effective rate increased from last week.
  • The average contract interest rate for 5/1 ARMs dropped to 3.33% from 3.41%, 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% of all U.S. retail residential mortgage applications.


Share your Comments