PhotoAnother increase -- the second in a row -- for mortgage applications.

The Mortgage Bankers Association reports its weekly survey shows applications edged up 0.9% in the week ending September 2.

The Refinance Index rose 1%, taking the refinance share of mortgage activity to 64.0% of total applications from 63.5% a week earlier.

The adjustable-rate mortgage (ARM) share of activity dropped to 4.3% of total applications; the FHA share was off 0.2% to 9.5%; the VA share of total applications fell from 12.5% the previous week to 11.9%; and the USDA share of total applications was unchanged 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) inched up to 3.68% from 3.67%, with points increasing to 0.37 from 0.33 (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) rose three basis points -- from 3.53% to 3.66%, with points increasing to 0.30 from 0.27 (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 dipped to 3.52% from 3.54%, with points decreasing to 0.35 from 0.36 (including the origination fee) for 80 % LTV loans. The effective rate decreased from last week.
  • The average contract interest rate for 15-year FRMs was unchanged at 2.96%, with points increasing to 0.34 from 0.31 (including the origination fee) for 80% LTV loans. The effective rate was unchanged from last week.
  • The average contract interest rate for 5/1 ARMs fell three basis points to 2.87%, with points increasing to 0.30 from 0.24 (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.


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