PhotoMortgage applications fell last week, negating nearly all of the previous week's advance.

After rising 9.9% previously, applications plunged 9.7% in the week ending September 15, according to the Mortgage Bankers Association’s (MBA) latest survey. The previous week’s results had included an adjustment for the Labor Day holiday.

The seasonally adjusted Purchase Index plunged 11% from a week earlier, while the Refinance Index was down 9%. The refinance share of mortgage activity rose to 52.1% of total applications from 51.0% the previous week.

The adjustable-rate mortgage (ARM) share of activity accounted for 6.8% of total applications, the FHA share was unchanged at 9.9%, the VA share dropped to 10.1% from 10.3% the week before, and the USDA share remained at 0.7%.

Contract interest rates

The average contract interest rate for 30-year fixed-rate mortgages (FRMs) with conforming loan balances ($424,100 or less) inched up one basis point -- to 4.04% from 4.03% -- with points unchanged at 0.40 (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) slipped to 3.99% from 4.00%, with points decreasing to 0.23 from 0.24 (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 rose three basis points to 3.97%, with points unchanged at 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 jumped to 3.35% from 3.30%, with points increasing to 0.44 from 0.39 (including the origination fee) for 80% LTV loans. The effective rate increased from last week.

The average contract interest rate for 5/1 ARMs shot up 13 basis points to 3.30%, with points decreasing to 0.34 from 0.36 (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.


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