PhotoAfter falling for the previous three weeks, applications for mortgages have rebounded.

The Mortgage Bankers Association (MBA) reports applications were up 2.7% during the week ending April 1.

The Refinance Index shot up 7% from the previous week, taking the refinance share of mortgage activity to 54.5% of total applications from 52.4% a week earlier.

The adjustable-rate mortgage (ARM) share of activity slipped by 4.7% of total applications, the FHA share of total applications dipped to 11.3% from 11.5%, the VA share was 12.2%, and the USDA share of total applications dropped to 0.8% from 0.9% the week prior.

Contract interest rates

  • The average contract interest rate for 30-year fixed-rate mortgages (FRMs) with conforming loan balances ($417,000 or less) dropped eight basis points -- from 3.94% to 3.86% -- with points decreasing to 0.32 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) fell to 3.76% from 3.82%, with points decreasing to 0.27 from 0.28 (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 slipped three basis points to 3.7%, with points increasing to 0.36 from 0.30 (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 was down from 3.19% to 3.10%, with points increasing to 0.37 from 0.30 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.
  • The average contract interest rate for 5/1 ARMs plunged 13 basis points to 2.94%, with points decreasing to 0.26 from 0.38 (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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