PhotoMortgage applications have bounced back following their first decline in three weeks, rising 3.0% in the week ending August 4, according to the Mortgage Bankers Association.

The Refinance Index jumped 5%, with the refinance share of mortgage activity increasing to 46.7% of total applications from 45.5% the previous week.

The adjustable-rate mortgage (ARM) share of activity rose to 6.8% percent of total applications, the FHA share inched down to 10.2% from 10.3%, the VA share of total applications went from 11.1% to 10.7%, and the USDA share of total was unchanged from a week earlier at 0.8%.

Contract interest rates

  • The average contract interest rate for 30-year fixed-rate mortgages (FRMs) with conforming loan balances ($424,100 or less) dipped three basis points -- to 4.14% from 4.17 -- with points increasing to 0.38 from 0.36 (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) fell from 4.11% to 4.07%, with points increasing to 0.26 from 0.25 (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 five basis points to 4.02%, with points increasing to 0.38 from 0.35 (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 3.41% from 3.45%, with points decreasing to 0.41 from 0.44 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.
  • The average contract interest rate for 5/1 ARMs inched up one basis point to 3.31%, with points decreasing to 0.21 from 0.29 (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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