In an uncertain political climate, the mortgage industry took a few hits last week.
CNBC reports that mortgage applications fell 3.2 percent on a seasonally adjusted basis from the week before; volume was 18 percent lower than the same time a year ago; and FHA applications dropped 13 percent. The Trump administration reversed a cut in the FHA's annual mortgage insurance premium during the day of the inauguration.
Mortgage rates also increased for the first time in 2017.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($424,000 or less) increased to its highest level since December, 4.39 percent, from 4.35 percent, with points increasing to 0.34 from 0.30 (including the origination fee) for 80 percent loan-to-value ratio loans.
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