PhotoApplications for mortgages are up for a second consecutive week.

According to the Mortgage Bankers Association’s latest survey, applications rose 2.8% in the week ending June 9.

The Refinance Index shot up 9%t from the previous week to its highest level since November 2016, pushing the refinance share of mortgage activity to 45.4% of total applications from 42.1% a week earlier. The average loan size for refinance applications reached the highest level since September 2016 at $274,700.

The adjustable-rate mortgage (ARM) share of activity was unchanged at 7.4% of total applications, the FHA share rose to 11.2% from 10.6%, the VA share held steady at 11.1% and the USDA share of total applications was unchanged 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) was down one basis point -- to 4.13% from 4.14%, with points increasing to 0.35 from 0.34 (including the origination fee) for 80% loan-to-value ratio (LTV) loans. The effective rate remained unchanged from last week.
  • The average contract interest rate for 30-year FRMs with jumbo loan balances (greater than $424,100) dropped to to 4.06% from 4.08%, with points increasing to 0.24 from 0.21 (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 slipped one basis point to 4.00%, with points decreasing to 0.29 from 0.39 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.
  • The average contract interest rate for 15-year fixed-rate mortgages declined from 3.39% to 3.37%, with points decreasing to 0.34 from 0.43 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.
  • The average contract interest rate for 5/1 ARMs rose six basis points to 3.26%, with points decreasing to 0.20 from 0.27 (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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