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Both contract and effective interestrnrates increased during the week with most of the contract rates up by doublerndigits.  The average contract rate forrn30-year fixed-rate mortgages (FRM) with conforming balances of $417,000 or lessrnrose 12 basis points to 4.68 percent with points increasing to 0.42 fromrn0.39.  The contract rate for jumborn30-year FRM with balances over that amount rose to 4.74 percent with 0.28 pointrnfrom 4.57 percent with 0.25 point.   The 15-year FRM had an average rate of 3.71rnpercent with 0.32 point, up from 3.60 percent with 0.35 point.</p

Thirty-year FRM backed by the FHA hadrnaverage contract rates of 4.40 percent compared to 4.25 percent a weekrnearlier.  Points decreased to 0.21 fromrn0.30.  </p

The market share of adjustable rate mortgagesrn(ARMs) increased slightly during the week to 6 percent.  The average contract rate for the mostrnpopular version of the ARM, the 5/1 hybrid, increased to 3.36 percent with 0.48rnpoint from 3.44 percent with 0.37 point. rn</p

MBA derives interest rate andrnapplication volume information from a weekly survey of mortgage bankers,rncommercial banks and thrifts that covers over 75 percent of all U.S. retailrnmortgage applications.  Interest raterninformation is for loans with 80 percent loan-to-value ratios and pointsrninclude the origination fee.  The surveyrnhas been conducted since 1990 and the base period and value for all indexes isrnMarch 16, 1990=100.

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