Mortgage rates reverse course on weekly basis
Posted on Thursday, April 30, 2015 at 10:45:04 AM
After weeks of minor decreases, residential financing rates have finally turned in the other direction, according to Freddie Mac. Even so, rates remain low and affordable - and significantly below year-ago averages.
Freddie Mac reported the 30-year fixed-rate mortgage averaged 3.68 percent for the week ending April 30, up from last week's 3.65 percent. However, the rate averaged 4.29 percent at this time last year. The same can be said for the 15-year FRM, which was at 2.94 percent this week, up slightly but well below the 3.38 percent reported in 2014.
"Mortgage rates were up slightly following a week of mixed economic releases," explained Len Kiefer, deputy chief economist for Freddie Mac. "Real GDP grew at a paltry 0.2 percent annualized rate in the first quarter of 2015, well below expectations. However, the National Association of Realtors' pending home sales index rose 1.1 percent in March for the third consecutive month."
In addition, the Mortgage Bankers Association reported that residential financing applications decreased on a weekly basis, down 2.3 percent for the week ending April 24. The refinance share of total mortgage activity also slipped, now at 55 percent.