PhotoApplications for mortgages are up for the second week in a row, rising 0.8% during the weekend ending January 13. The Mortgage Bankers Association’s Weekly Mortgage Applications Survey includes an adjustment for the New Year’s holiday.

The Refinance Index shot up 7% from the previous week, pushing the refinance share of mortgage activity to 53.0% of total applications from 51.2% the previous week.

The adjustable-rate mortgage (ARM) share of activity was 5.7% of total applications, the FHA share rose to 13.1% from 11.7% a week earlier, the VA share dipped to 12.1% from 12.8%, and the USDA share was unchanged at 0.9%.

Contract interest rates

  • The average contract interest rate for 30-year fixed-rate mortgages (FRMs) with conforming loan balances ($424,000 or less) fell to its lowest level since last month -- 4.27%, from 4.32% -- with points decreasing to 0.39 from 0.41 (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 $424,000) went down five basis points -- to 4.22% from 4.27% -- with points increasing to 0.36 from 0.31 (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 from 4.08% to 4.10%, with points decreasing to 0.28 from 0.35 (including the origination fee) for 80% LTV loans. The effective rate remained unchanged from last week.
  • The average contract interest rate for 15-year FRMs dipped five basis points to 3.51%, with points decreasing to 0.34 from 0.42 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.
  • The average contract interest rate for 5/1 ARMs jumped to 3.44% from 3.32%, with points decreasing to 0.21 from 0.46 (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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