Jobs report leads to lower residential financing rates
Posted on Friday, April 10, 2015 at 8:06:04 AM
The numbers are in, and with a stagnant labor market report comes lower residential financing rates, according to Freddie Mac.
For the week ending April 9, the 30-year fixed-rate mortgage averaged 3.66 percent, down from the previous seven-day period's average of 3.70 percent. A similar decrease was reported for the 15-year FRM, which declined from 2.98 percent to 2.93 percent during that time period.
"Mortgage rates fell across the board following last week's disappointing employment report," explained Len Kiefer, deputy chief economist for Freddie Mac. "The U.S. economy added 126,000 new jobs in March, well below market expectations of 247,000 jobs. We did see some uptick in wages, as average hourly earnings increased 7 cents for the month, and are up 2.1 percent over the year."
While residential financing rates remain low, the number of mortgage applications continues to increase. According to the Mortgage Bankers Association, applications rose by 0.4 percent on a weekly basis in early April.
Mike Fratantoni, chief economist for the MBA, pointed to low mortgage rates and a stronger housing market as key reasons why applications continue to climb.