Residential financing rates hover near yearly lows
Posted on Friday, April 17, 2015 at 8:00:11 AM
As summer edges closer and the peak homebuying season begins to hit its stride, Americans are still seeing affordable real estate conditions and low residential financing rates.
According to Freddie Mac, the 30-year fixed-rate mortgage averaged only 3.67 percent for the week ending April 16. The average for the prior seven-day period was 3.66 percent, while the year-ago average was higher at 4.27 percent.
A similar trend was seen with the 15-year FRM, which averaged 2.94 percent this April, up from last week's 2.93 percent. At the same time in 2014, the fixed rate was 3.33 percent.
"Mortgage rates were little changed following a light week of economic reports and remaining low at the spring homebuying season," explained Len Kiefer, deputy chief economist for Freddie Mac. "Of the few releases, the advance estimate of retail sales rebounded 0.9 percent in March though slightly below market expectations."
In addition, the Mortgage Bankers Association reported that residential financing applications slipped in early April, dropping 2.3 percent on a weekly basis. However, the refinance share of mortgage activity increased by 1 percent to 58 percent of total applications, while both the FHA share and the VA share of applications rose as well.