The average contract interest rate on 30-year fixed-rate mortgages with conforming loan balances ($806,500 or less) in the US decreased to 6.31% in the week ended December 19th, the lowest in seven weeks, compared to 6.38% in the previous period, according to the MBA. Still, mortgage applications fell 5%, extending a 3.8% drop in the previous period, with the index hitting their lowest in over three months. Applications to purchase a home fell 3.7% and those to refinance a home loan sank 5.6%. Meanwhile, the average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $806,500) increased to 6.52% from 6.44%. The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA increased to 6.14%, from 6.12%.