PhotoAnother increase in mortgage applications -- the second in as many weeks.

The Mortgage Bankers Association reports its Weekly Mortgage Applications Survey showed applications edged up 0,1% during the week ending August 11.

The Refinance Index was up 2% from the previous week increasing the refinance share of mortgage activity 47.8% of total applications -- the highest level since February -- from 46.7% a week earlier.

The adjustable-rate mortgage (ARM) share of activity fell to 6.6% of total applications, the FHA share was unchanged at 10.2%, the VA share slipped to to 10.5% from 10.7% the previous week and the USDA share of total applications held firm 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) inched down two basis points -- from 4.14% to 4.12%, its lowest level since November 2016, with points unchanged at 0.38 (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 $424,100) dipped to 4.04% from 4.07%, with points increasing to 0.27 from 0.26 (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 down one basis point to 4.01%, with points increasing to 0.40 from 0.38 (including the origination fee) for 80% LTV loans. The effective rate remained unchanged from last week.
  • The average contract interest rate for 15-year FRMs was unchanged at 3.41%, with points decreasing to 0.35 from 0.41 (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 three basis points to 3.34%, with points increasing to 0.29 from 0.21 (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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