PhotoA surge in mortgage applications last week.

The Mortgage Bankers Association (MBA) reports applications jumped 9.3% in the week ending June 3, with an an adjustment for the Memorial Day holiday taken into account.

Refinance applications shot up 7%, although the refinance share of mortgage activity fell to 53.8% of total applications from 54.3% the previous week.

The adjustable-rate mortgage (ARM) share of activity held steady at 5.0% of total applications, the FHA share rose to 13.0% from 12.5%, the VA share of total applications was down 0.5% to 11.5%, and the USDA share of total applications was unchanged at 0.7%.

Contract interest rates

  • The average contract interest rate for 30-year fixed-rate mortgages (FRMs) with conforming loan balances ($417,000 or less) dipped two basis points -- from 3.85% to 3.83% -- with points decreasing to 0.33 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 $417,000) was unchanged at 3.81%, with points decreasing to 0.25 from 0.35 (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 six basis points to 3.71%, with points decreasing to 0.23 from 0.26 (including the origination fee) for 80% LTV loans. The effective rate increased from last week.
  • The average contract interest rate for 15-year fixed-rate mortgages slipped to 3.11% from 3.12%, with points decreasing to 0.35 from 0.40 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.
  • The average contract interest rate for 5/1 ARMs fell four basis points to 2.96%, with points decreasing to 0.29 from 0.44 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.

The MBA Weekly Mortgage Applications Survey covers over 75% of all U.S. retail residential mortgage applications.


Share your Comments