Contract interest rates were mixed
of ConsumerAffairs
Another decline -- the second in a row -- for mortgage applications.
The Mortgage Bankers Associations latest weekly survey shows a slight decline 0.5 percent during the week ending September 22.
The seasonally adjusted Purchase Index was up 3 percent from a week earlier, while the Refinance Index dropped 4 percent, pushing the refinance share of mortgage activity down to 50.8 percent of total applications from 52.1 percent the week before.
The adjustable-rate mortgage (ARM) share of activity slipped to 6.5 percent of total applications, the FHA share fell to 9.6 percent from 9.9 percent a week earlier, the VA share of total applications edged down to 10.0 percent from 10.1 percent, and the USDA share held steady at 0.7 percent.
Contract interest rates
The average contract interest rate for 30-year fixed-rate mortgages (FRMs) with conforming loan balances ($424,100 or less) rose seven basis points -- to 4.11 percent from 4.04 percent -- with points unchanged at 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) went from 3.99 percent to 4.06 percent, with points increasing to 0.26 from 0.23 (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 inched up one basis point to 3.98 percent, with points increasing to 0.50 from 0.34 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.
The average contract interest rate for 15-year FRMs advanced to 3.38 percent from 3.35 percent, with points decreasing to 0.40 from 0.44 (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 jumped eight basis points to 3.38 percent, with points increasing to 0.45 from 0.34 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.
The survey covers over 75 percent of all U.S. retail residential mortgage applications.