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Residential financing rates buck trend, begin to climb

Posted on Monday, February 2, 2015 at 8:38:58 AM

It's been a while, but the latest report from Freddie Mac has finally indicated that residential financing rates increased. The last time this happened, the calendar was in 2014.

According to the government-sponsored enterprise, the 30-year fixed-rate mortgage averaged 3.66 percent for the week ending Jan. 29. That is up from the previous seven-day period's 3.63 percent. The 15-year FRM also climbed, up from 2.93 percent to 2.98 percent during that time.

"Mortgage rates ticked up this week for the first time in 2015 following positive home sales reports," explained Frank Nothaft, vice president and chief economist at Freddie Mac. "New home sales surged 11.6 percent in December beating market expectations. Likewise, existing home sales rose 2.4 percent to an annual rate of 5.04 million homes in December."

In addition, the Mortgage Bankers Association reported that residential financing applications dropped in late January. For the week ending Jan. 23, applications fell 3.2 percent compared to the prior seven-day period. The refinance share dropped 2 percent as well, while adjustable-rate mortgages declined to only 5.7 percent of total activity.