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No significant uptick in residential financing rates, says Freddie Mac

Posted on Friday, May 22, 2015 at 7:52:23 AM

Another week has passed without a significant increase in residential financing rates. According to Freddie Mac, the both the 30-year fixed-rate mortgage and the 15-year FRM decreased from the previous seven-day period, although the changes were minor.

For the week ending May 21, the 30-year FRM averaged only 3.84 percent, down from 3.85 percent. The 15-year FRM averaged 3.05 percent, below the previous rate of 3.07 percent. 

"Mortgage rates were little changed this week amid positive housing news," explained Len Kiefer, deputy chief economist at Freddie Mac. "Housing starts surged 20.2 percent to a seasonally adjusted pace of 1.14 million units in April, the highest level since 2007. As homebuying season moves into full swing, homebuilders remain positive about home sales in the near future."

Furthermore, the Mortgage Bankers Association reported that residential financing applications slipped slightly alongside rates, decreasing 1.5 percent on a week-over-week basis. This change was likely attributable to the slight increase in rates earlier in May, with many potential borrowers keeping a close eye on economic conditions.

Overall, the housing market is in a good place this year, and it should only improve as the buying season heats up.