Freddie Mac: Thanksgiving marked by low residential financing rates
Posted on Monday, December 1, 2014 at 7:41:29 AM
This Thanksgiving holiday was a time to spend with family, eat plenty of food and give thanks. It was also a time of low residential financing rates, according to Freddie Mac.
The government-sponsored enterprise reported that the 30-year fixed-rate mortgage averaged only 3.97 percent for the week ending Nov. 26. The week prior, it averaged 3.99 percent. For the 15-year FRM, there was no difference over that time span - the rate held steady at 3.17 percent.
"Mortgage rates were little changed on the week with the 30-year fixed-rate mortgage declining to 3.97 percent," explained Frank Nothaft, chief economist and vice president at Freddie Mac. "This comes during a week of uplifting economic news heading into the holiday; GDP growth was revised up in the third quarter from 3.5 percent to 3.9 percent, while existing homes sold at a 5.26 million unit pace in October, topping expectations of 5.15 million units."
In addition, the Mortgage Bankers Association noted that residential financing applications dropped on a weekly basis for the seven-day period ending Nov. 21. Applications slipped 4.3 percent, while the Refinance Index declined 4 percent. Even so, the refinance share of total mortgage activity increased from 61 percent to 63 percent.