The Mortgage Bankers Association's (MBA) reported last week that mortgage applications rose 1.5% from the week earlier while the Refinance Index remained unchanged from the previous week. The refinance share of mortgage activity decreased to 41.6 percent of total applications, the lowest level since September 2008, from 42.6 percent the previous week. The average loan size for purchase applications reached a survey high at $318,700.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($424,100 or less) decreased to 4.28 percent from 4.34 percent, with points increasing to 0.38 from 0.31 (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 $424,100) remained unchanged at 4.24 percent, with points increasing to 0.28 from 0.24 (including the origination fee) for 80 percent LTV loans.