US Mortgage Rollercoaster Continues

The refinance share of mortgage activity increased to61 percent of total applications from 57 percent the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 7 percent of total applications. The HARP share of refinance applications increased to 40 percent, from 38 percent the week before, and is the highest since MBA started tracking this measure in early 2012.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) decreased to 4.75 percent from 4.80 percent, with points decreasing to 0.39 from  0.46 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans.  The effective rate decreased from last week.

The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,000) decreased to 4.83 percent from 4.84 percent, with points decreasing to 0.33 from 0.41 (including the origination fee) for 80 percent LTV loans.  The effective rate decreased from last week.

The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA decreased to 4.50 percent from 4.56 percent, with points increasing to 0.41 from 0.28 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.

The average contract interest rate for 15-year fixed-rate mortgages decreased to 3.81 percent from 3.83 percent, with points decreasing to 0.34 from 0.42 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.

The average contract interest rate for 5/1 ARMs decreased to 3.54 percent from 3.59 percent,with points remaining unchanged at 0.43 (including the origination fee) for 80 percent LTV loans.  The effective rate decreased from last week.