PhotoMortgage applications rose for a second straight week, according to data from the Mortgage Bankers Association. The survey for the week ending July 8, which included an adjustment for the Fourth of July holiday shows applications jumped 7.2% from the previous week.

The Refinance Index shot up 11%, with the refinance share of mortgage activity increasing to 64.0% of total applications from 61.6% the week before.

The adjustable-rate mortgage (ARM) share of activity slipped to 5.2% of total applications, the FHA share was 10.0%, the VA share of total applications dropped to 12.1% from 12.8% the previous week, and the USDA share 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) fell six basis points to 3.60% -- its lowest level since May 2013 -- from 3.66%, with points increasing to 0.36 from 0.32 (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) dropped from 3.67% to 3.61%, with points increasing to 0.32 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 was down three basis points to 3.53%, with points increasing to 0.32 from 0.31 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.
  • The average contract interest rate for 15-year FRMs dipped to 2.88% from 2.96%, with points increasing to 0.34 from 0.32 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.
  • The average contract interest rate for 5/1 ARMs fell seven basis points to 2.78%, with points decreasing to 0.25 from 0.26 (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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