PhotoMortgage applications are up for the third time in as many weeks, rising 4.0%, according to the Mortgage Bankers Association.

The survey for the week ending January 20 included an adjustment for the Martin Luther King Day holiday.

The Refinance Index inched up 0.2%, although the refinance share of mortgage activity fell to 50.0% of total applications from 53.0% the previous week -- the lowest level since July 2015.

The adjustable-rate mortgage (ARM) share of activity was unchanged at 5.7%, the FHA share of total applications rose to 13.6% from 13.1% a week earlier, the VA share went to 12.2% from 12.1% the prior week, and the USDA share of total applications 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) rose eight basis points -- to 4.35% from 4.27% --¬†with points decreasing to 0.30 from 0.39 (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 $424,000) went from 4.22% to 4.28%, with points decreasing to 0.31 from 0.36 (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 increased shot up nine basis points to 4.19%, with points increasing to 0.35 from 0.28 (including the origination fee) for 80% LTV loans. The effective rate increased from last week.
  • The average contract interest rate for 15-year FRMs was up to 3.57% from 3.51%, with points decreasing to 0.28 from 0.34 (including the origination fee) for 80% LTV loans. The effective rate increased from last week.
  • The average contract interest rate for 5/1 ARMs dipped three basis points to 3.41%, with points increasing to 0.30 from 0.21 (including the origination fee) for 80% LTV loans. The effective rate remained unchanged from last week.

The survey covers over 75% of all U.S. retail residential mortgage applications.


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