Mortgage applications fell last week for the third time in four weeks, with applications for refinancing continuing their decline.

The Mortgage Bankers Association (MBA) reports applications overall were down 3.3% in the week ending March 11, 2016.

The Refinance Index plunged 6%, pushing the refinance share of mortgage activity down to 55.0% of total applications from 56.7% the previous week -- the lowest level since August 2015. The adjustable-rate mortgage (ARM) share of activity dropped to 4.9% of total applications.

The FHA share of total applications dipped to 11.7% from 12.0% the week before, the VA share was 12.3%, and the USDA share of total applications was unchanged at 0.8 percent%.

Contract interest rates

  • The average contract interest rate for 30-year fixed-rate mortgages (FRMs) with conforming loan balances ($417,000 or less) was up five basis points -- to 3.94% from 3.89% --¬†with points increasing to 0.42 from 0.38 (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) went from 3.81% to 3.86%, with points decreasing to 0.28 from 0.31 (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 jumped 6 basis points to 3.77%, with points decreasing to 0.33 from 0.37 (including the origination fee) for 80% LTV loans. The effective rate increased from last week.
  • The average contract interest rate for 15-year FRMs rose to 3.22% from 3.14%, with points decreasing to 0.39 from 0.41 (including the origination fee) for 80% LTV loans. The effective rate increased from last week.
  • The average contract interest rate for 5/1 ARMs inched up three basis points to 3.23%, with points increasing to 0.35 from 0.32 (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