Freddie Mac: Lower rates help maintain home affordability
Posted on Friday, March 27, 2015 at 8:06:45 AM
With another week gone in 2015, it seems that the higher residential financing rates predicted by many industry experts are still a ways off. According to Freddie Mac, both the 30-year fixed-rate mortgage and the 15-year FRM saw rates decrease near the end of March.
For the week ending March 26, the 30-year FRM averaged 3.69 percent, down from the previous week's 3.78 percent. The 15-year FRM averaged 2.97 percent and 3.06 percent, respectively.
"Low mortgage rates are a welcome sign for those in the market to buy a home this spring season and will help to support homebuyer affordability," explained Len Kiefer, deputy chief economist at Freddie Mac. "Existing home sales in February increased slightly, but less than expected, to a seasonally adjusted annual rate of 4.88 million units."
Furthermore, the Mortgage Bankers Association reported that residential financing applications ticked up on a weekly basis near the end of March. For the week ending March 20, applications increased 9.5 percent. The refinance share of mortgage activity rose as well, now at 61 percent. On a similar note, the adjustable-rate mortgage share had a slight gain up to 5.8 percent.