PhotoMortgage applications ticked lower in the week ending September 23, according to the Mortgage Bankers Association, with a decline of 0.7%.

The Refinance Index was down 2% from the previous week, pushing the refinance share of mortgage activity down to 62.7% of total applications from 63.1% a week earlier.

The adjustable-rate mortgage (ARM) share of activity was unchanged at 4.4% of total applications, the FHA share held steady at 10.2%, the VA share rose 11.9% from 11.6% the week be fore, and the USDA share of total applications slipped to 0.6% from 0.7% the prior week.

Contract interest rates

  • The average contract interest rate for 30-year fixed-rate mortgages (FRMs) with conforming loan balances ($417,000 or less) dropped three basis points -- from 3.70% to 3.66% -- with points decreasing to 0.33 from 0.38 (including the origination fee) for 80% loan-to-value ratio (LTV) loans. The effective rate decreased from last week.
  • The average contract interest rate for 30-year FRMs with jumbo loan balances (greater than $417,000) fell to 3.64% from 3.69%, with points decreasing to 0.28 from 0.29 (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 dipped four basis points to 3.52%, with points decreasing to 0.21 from 0.23 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.
  • The average contract interest rate for 15-year FRMs went from 2.99% to 2.95%, with points increasing to 0.38 from 0.35 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.
  • The average contract interest rate for 5/1 ARMs was down four basis points to 2.92%, with points increasing to 0.40 from 0.26 (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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