No more gains as mortgage rates tick down once again
Posted on Thursday, February 5, 2015 at 10:01:50 AM
The overall trend for residential financing rates has been a declining trend. However, last week's figures changed that by actually increasing - a rarity in 2015.
Despite the uptick, the gains didn't last for very long. According to Freddie Mac, the 30-year fixed-rate mortgage rate declined for the week ending Feb. 5, down from last week's 3.66 percent to 3.59 percent. The 15-year FRM dropped from 2.98 percent to 2.92 percent.
"Mortgage rates fell this week following the release of weaker than expected pending home sales, which fell 3.7 percent in December," explained Len Kiefer, deputy chief economist at Freddie Mac. "Moreover, real GDP growth for the fourth quarter was 2.6 percent and the Institute for Supply Management reported slower growth in manufacturing last month, both missing market consensus forecasts."
In addition, the Mortgage Bankers Association reported that mortgage applications increased on a weekly basis. For the seven-day period ending Jan. 30, applications ticked up 1.3 percent. The Refinance Index climbed by 3 percent.
Overall, the refinance share of mortgage activity dropped to only 71 percent, down by 1 percent. Adjustable-rate mortgages accounted for 5.3 percent of all the applications analyzed by the MBA.