PhotoAnother drop for mortgage applications.

The weekly survey conducted by the Mortgage Bankers Association shows applications were down 2.1% in the week ending August 19.

The Refinance Index was down 3.0%, dropping the refinance share of mortgage activity to 62.4% of total applications from 62.6% the previous week.

The adjustable-rate mortgage (ARM) share of activity was unchanged at 4.6% of total applications; the FHA share dipped to 8.9% from 9.6% a week earlier; the VA share of total applications fell to 12.4% from 13.2%; and the USDA share of total applications held steady at 0.6%.

Contract interest rates

  • The average contract interest rate for 30-year fixed-rate mortgages (FRMs) with conforming loan balances ($417,000 or less) rose three basis points -- to 3.67% from 3.64%. Points increased to 0.34 from 0.31 (including the origination fee) for 80% loan-to-value ratio (LTV) loans, and the effective rate increased from last week.
  • The average contract interest rate for 30-year FRMs with jumbo loan balances (greater than $417,000) came in at 3.62% from 3.60% the week before, with points increasing to 0.35 from 0.28 (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 four basis points to 3.53%, with points increasing to 0.34 from 0.28 (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 from 2.90% to 2.95%, with points increasing to 0.38 from 0.32 (including the origination fee) for 80 % loans. The effective rate increased from last week.
  • The average contract interest rate for 5/1 ARMs slipped one basis point to 2.84%, with points increasing to 0.37 from 0.17 (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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