PhotoMortgage applications fell last week after two weeks of solid gains.

The Mortgage Bankers Association (MBA) reports applications were down 4.3% in the week ending February 19. The results include an adjustment to account for the President’s Day holiday.

The Refinance Index, which had powered the previous weeks' increases, fell 8%, taking the refinance share of mortgage activity down to 61.0% of total applications from 64.3% the previous week.

The adjustable-rate mortgage (ARM) share of activity was 5.8% of total applications, the FHA share was 12.0%, the VA share was 13.0%, and the USDA share of total applications was 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) rose two basis points -- to 3.85% from 3.83%, with points increasing to 0.42 from 0.36 (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 $417,000) increased to 3.80% from 3.74%, with points slipping to 0.25 from 0.26 (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 was up five basis points to 3.72%, with points increasing to 0.45 from 0.34 (including the origination fee) for 80% LTV loans. The effective rate increased from last week.
  • The average contract interest rate for 15-year FRMs inched up to 3.12% from 3.11%, with points increasing to 0.40 from 0.31 (including the origination fee) for 80% LTV loans. The effective rate increased from last week.
  • The average contract interest rate for 5/1 ARMs jumped 15 basis points -- to 3.07%, with points dipping to 0.30 from 0.32 (including the origination fee) for 80% LTV loans. The effective rate increased from last week.

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


Share your Comments