Mortgage rates dip slightly on bad earnings reports
Posted on Friday, July 24, 2015 at 3:47:43 PM
Mortgage rates dipped this week, offering potential homebuyers incentive to seek residential financing.
The averaged 30-year fixed-rate mortgage fell from 4.09 percent last week to 4.04 percent this week, likely a welcome dip to people looking for home loans. One year ago the rate for a similar mortgage was 4.13 percent. Meanwhile, 15-year fixed-rate mortgages fell from 3.25 percent to 3.21 percent.
Though mortgage rates dropped this week, data from the Mortgage Bankers Association shows that applications remained flat, according to the Washington Post.
The Washington Post explained that the interest rate fell, along with stocks, did on news of poor earnings reports. Sean Becketti, chief economist for Freddie Mac, expressed similar sentiment in a statement.
"U.S. Treasury yields dropped following announcements that many blue chip companies' earnings failed to meet expectations," Becketti explained.
In his statement, Becketti went on to explain that housing remains one of the positives in the U.S. economic recovery. In fact, following a wave of good news, the MBA substantially increased its forecasts for mortgage originations in 2015 and 2016.
As long as mortgage rates remain close to 4 percent, it may be wise for prospective homebuyers to look at residential financing options. Interest rates are expected to head toward 5 percent sooner rather than later if the economic recovery continues trending in the right direction.