PhotoAnother week of increases for mortgage applications -- the second in a row.

Data from the Mortgage Bankers Association’s Weekly Mortgage Applications Survey shows applications were up 0.4% during the week ending July 21.

The Refinance Index rose 3% from the previous week, putting the refinance share of mortgage activity at 46.0% of total applications -- up 1.3% from a week earlier.

The adjustable-rate mortgage (ARM) share of activity increased to 6.8% of total applications, the FHA share dropped to 10.2% from 10.7% the week before, the VA share of total applications dipped to 10.5% from 10.7% and the USDA share of total applications inched up to 0.8% from 0.7% the previous week.

Contract interest rates

  • The average contract interest rate for 30-year fixed-rate mortgages (FRMs) with conforming loan balances ($424,100 or less) was down five basis points -- to 4.17% from 4.22%, with points increasing to 0.40 from 0.31 (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 $424,100) dropped from 4.18% to 4.06%, with points decreasing to 0.24 from 0.30 (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 fell five basis points to 4.05%, with points increasing to 0.44 from 0.30 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.
  • The average contract interest rate for 15-year FRMs slipped to 3.45% from 3.48%, with points increasing to 0.45 from 0.39 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.
  • The average contract interest rate for 5/1 ARMs decreased three basis points to 3.29%, with points increasing to 0.26 from 0.21 (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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