PhotoMortgage applications are rising again following a decline the previous week.

According to the Mortgage Bankers Association, applications were up 2.6% during the week ending May 20, with the average loan size hitting a survey high of $307,700.

The Refinance Index inched ahead 0.4%, with the refinance share of mortgage activity slipping to 53.7% of total applications from 54.6% the previous week.

The adjustable-rate mortgage (ARM) share of activity came in at 5.7% of total applications, the FHA share rose to 12.7% from 12.5%, the VA share slipped to 11.5% from 12.1%, 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) rose three basis points -- from 3.82% to 3.85%, with points increasing to 0.37 from 0.34 (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) jumped to 3.82% from 3.74%, with points decreasing to 0.27 from 0.29 (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 was up seven basis points to 3.70%, with points decreasing to 0.27 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 inched up to 3.06% from 3.02%, with points increasing to 0.40 from 0.38 (including the origination fee) for 80% LTV loans. The effective rate increased from last week.
  • The average contract interest rate for 5/1 ARMs shot up 15 basis points to 3.09%, with points increasing to 0.31 from 0.30 (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.


Share your Comments