PhotoA turnaround for mortgage applications.

After falling in recent weeks, applications for mortgages rose 5.8% during the week ending January 6.

The report from the Mortgage Bankers Association includes an adjustment to account for the New Year’s Day holiday, while the previous week’s results were adjusted for the Christmas holiday.

The Refinance Index was up 4% from the previous week, although the refinance share of mortgage activity dropped to 51.2% of total applications from 52.2% a week earlier.

The adjustable-rate mortgage (ARM) share of activity advanced to 5.5% of total applications, the FHA share rose to 11.7%, the VA share went to 12.8% from 12.3% the week prior, and the USDA share of total applications slipped to 0.9% from 1.1% the week before.

Contract interest rates

  • The average contract interest rate for 30-year fixed-rate mortgages (FRMs) with conforming loan balances ($417,000 or less) dropped 7 basis points -- to 4.32% from 4.39% -- with points decreasing to 0.41 from 0.43 (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 from 4.37% to 4.27%, with points decreasing to 0.31 from 0.44 (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 plunged 14 basis points to 4.08%, with points increasing to 0.35 from 0.34 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.
  • The average contract interest rate for 15-year FRM declined to 3.56% from 3.64%, with points increasing to 0.42 from 0.38 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.
  • The average contract interest rate for 5/1 ARMs inched up 4 basis points to 3.32%, with points increasing to 0.46 from 0.42 (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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