Slight mortgage rate increase follows weeks of declines
Posted on Friday, February 13, 2015 at 8:02:52 AM
This year has been the year of the residential financing decrease so far. However, recent data from Freddie Mac indicated that rates finally climbed as other economic data improved.
The government-sponsored enterprise reported that the 30-year fixed-rate mortgage averaged 3.69 percent for the seven-day period ending Feb. 12. The week prior it averaged 3.59 percent. A similar uptick was reported for the 15-year FRM, up from 2.92 percent to 2.99 percent.
"Mortgage rates rose this week following strong economic data," explained Len Kiefer, deputy chief economist at Freddie Mac. "The economy added 257,000 new jobs in January after robust increases of 329,000 in December and 423,000 in November. The unemployment rate edged up to 5.7 percent last month from 5.6 percent in December."
In addition, the Mortgage Bankers Association reported a small decline in residential financing applications in early February. Overall, applications dropped by 9 percent on a weekly basis for the seven-day period ending Feb. 6. The refinance share of all activity slid to 69 percent from 71 percent, while adjustable-rate mortgages were more popular, making up 5.7 percent of total applications.