Applications for mortgages continue to bounce around

Up, down, up, down. The volatility in the mortgage application business continues.



After rising last week, applications posted a decline, dipping 4.7% in the week ending June 26, according to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey.



The Refinance Index was down 5% to its lowest level since December, with the refinance share of mortgage activity falling to 48.9% of total applications.



The adjustable-rate mortgage (ARM) share of activity was unchanged at 7.0%, the FHA share rose to 14.0% from 13.9%, the VA share of total applications slipped to 10.8% from 10.9%, and the USDA share of total applications edged up to 1.0% from 0.9% 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) rose 7 basis points, from 4.19% to 4.26%, its highest level since October 2014, with points decreasing to 0.33 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) jumped to 4.21%, its highest level since October 2014, from 4.14%, with points increasing to 0.38 from 0.35 (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 advanced 8 basis points -- to 4.04%, its highest level since September 2014, with points increasing to 0.18 from 0.14 (including the origination fee) for 80% LTV loans. The effective rate increased from last week.
    The average contract interest rate for 15-year FRMs increased to 3.44%, its highest level since October 2014, from 3.38%, with points falling to 0.31 from 0.37 (including the origination fee) for 80% LTV loans. The effective rate increased from last week.
    The average contract interest rate for 5/1 ARMs rose 5 basis points to 3.09%, with points decreasing to 0.45 from 0.46 (including the origination fee) for 80% LTV loans. The effective rate increased from last week.

read more: http://www.consumeraffairs.com/news/applications-for-mortgages-continue-to-bounce-around-070115.html