PhotoFor a third consecutive week there's been a decline in applications for mortgages.

 

The Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey shows applications were down 3.5% in the week ending May 8.

 

The Refinance Index posted a drop of 6%, with the refinance share of mortgage activity calling from 52% of total applications to 51% -- its lowest level since May 2014. The adjustable-rate mortgage (ARM) share of activity, on the other hand, rose to 6.3% of total applications.

 

The average loan size for purchase applications rose to a survey high of $298,500.

 

The FHA share of total applications fell 2 basis points -- from 14.0% to 13.8%, the VA share was unchanged at 11.9% and the USDA share of total applications inched up to 0.9% from 0.8% the week prior.

 

Contract interest rates

 

  • The average contract interest rate for 30-year fixed-rate mortgages (FRMs) with conforming loan balances ($417,000 or less) rose 7 basis points to 4.00%, its highest level since March, with points increasing to 0.36 from 0.35 (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) increased jumped to 3.99%, its highest level since March, from 3.91%, with points increasing to 0.33 from 0.24 (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 surged 7 basis points to 3.76%, its highest level since March, with points decreasing to 0.14 from 0.21 (including the origination fee) for 80% LTV loans. The effective rate increased from last week.
  • The average contract interest rate for 15-year FRMs increased to 3.23%, its highest level since March, from 3.19%, with points increasing to 0.40 from 0.30 (including the origination fee) for 80% LTV loans. The effective rate increased from last week.
  • The average contract interest rate for 5/1 ARMs was up 13 basis points to 3.00%, its highest level since March, with points increasing to 0.46 from 0.33 (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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