Mortgage applications plunged following last week’s jump in mortgage rates, down a steep 9.4 percent, according to data gathered in the Mortgage Bankers Association (MBA) Weekly Mortgage Applications Survey. The Refinance Index in the survey, similarly, fell 16 percent, while the Purchase Index dipped 0.2 percent. The average loan size for purchase applications reached a survey high, $312,400.

The refinance share of mortgage activity, as well, decreased to 55.1 percent of total applications—the lowest level since June 2016—from 58.2 percent the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 5.7 percent of total applications, its highest level since June 2016.

The FHA share of total applications also decreased, to 10.4 percent from 11.7 percent the previous week, while the VA share of total applications decreased to 11.7 percent from 12.5 percent. The USDA share of total applications remained unchanged at 0.8 percent.

According to data from the survey, the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) increased to its highest level since July 2015, 4.23 percent, from 4.16 percent, with points increasing to 0.41 from 0.39 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans. The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,000) increased to its highest level since July 2015, 4.18 percent, from 4.04 percent, with points decreasing to 0.29 from 0.37 (including the origination fee) for 80 percent LTV loans. The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA, increased to its highest level since July 2015, 4.00 percent, from 3.90 percent, with points increasing to 0.44 from 0.36 (including the origination fee) for 80 percent LTV loans.
 
The average contract interest rate for 15-year fixed-rate mortgages, in addition, increased to its highest level since October 2014, 3.48 percent, from 3.35 percent, with points increasing to 0.33 from 0.32 (including the origination fee) for 80 percent LTV loans. The average contract interest rate for 5/1 ARMs decreased to 3.23 percent from 3.24 percent, with points increasing to 0.44 from 0.28 (including the origination fee) for 80 percent LTV loans.
 
Source: Mortgage Bankers Association (MBA) 

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