PhotoMortgage applications posted their third decline in a row during the week ending September 29, dipping a seasonally adjusted 0.4 percent from a week earlier.

The Mortgage Bankers Association reports the seasonally adjusted Purchase Index was up 1 percent, while the Refinance Index fell 2 percent. Those changes brought the refinance share of mortgage activity down to 50.1 percent of total applications from 50.8 percent a week earlier.

The adjustable-rate mortgage (ARM) share of activity fell to 6.0 percent of total applications, while the FHA share rose to 10.0 percent from 9.6 percent. The VA share of total applications remained unchanged at 10.0 percent, and the USDA share edged up to 0.8 percent from 0.7 percent from the previous week.

Contract interest rates

  • The average contract interest rate for 30-year fixed-rate mortgages (FRMs) with conforming loan balances ($424,100 or less) inched up 1 basis point to 4.12 percent from 4.11 percent, with points increasing to 0.45 from 0.40 (including the origination fee) for 80 percent 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 $424,100) rose to 4.09 percent from 4.06 percent, with points unchanged at 0.26 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.
  • The average contract interest rate for 30-year FRMs backed by the FHA went up 1 basis point to 3.99 percent, with points decreasing to 0.37 from 0.50 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.
  • The average contract interest rate for 15-year FRMs increased to 3.42 percent from 3.38 percent, with points decreasing to 0.39 from 0.40 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.
  • The average contract interest rate for 5/1 ARMs dropped 8 basis points to 3.30 percent, with points decreasing to 0.43 from 0.45 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.

The survey covers over 75 percent of all U.S. retail residential mortgage applications.


Share your Comments