Residential financing rates continue weekly declines
Posted on Friday, December 5, 2014 at 9:04:02 AM
The past few weeks have been accompanied by a steady decrease in residential financing rates.
For the seven-day period ending Dec. 4, the trend is no different. According to Freddie Mac, the 30-year fixed-rate mortgage averaged 3.89 percent. This is down compared to last week's 3.97 percent and last year's 4.46 percent. The same can be said for the 15-year FRM, which averaged 3.10 percent, compared to 3.17 percent last week and 3.47 percent last year.
"Mortgage rates were down across the board on a week of underwhelming economic releases," explained Frank Nothaft, vice president and chief economist at Freddie Mac. "New home sales missed consensus expectations by selling at an annual pace of 458,000 units in October, and the National Association of Realtors reported that pending home sales dipped in October by 1.1 percent."
In addition, the Mortgage Bankers Association reported that applications for residential financing have dropped by 7.3 percent on a weekly basis for the seven-day period ending Nov. 28. An adjustment was included for Thanksgiving. The refinance share of mortgage activity slipped from 63 percent to 60 percent during that time.