Residential financing rates, applications tick lower once more
Posted on Thursday, January 30, 2014 at 9:52:21 AM
It appears that residential financing rates are on their way down once again, as Freddie Mac's recent Primary Mortgage Market Survey reported another slight decrease on a weekly basis.
For the week ending Jan. 30, the 30-year fixed-rate mortgage averaged 4.32 percent, compared to 4.39 percent the week prior, according to the government enterprise. Treasury-indexed adjustable-rate mortgages were split, however, with the five-year variant averaging 3.12 percent, down from 3.15 percent, while the one-year ARM averaged 2.55 percent, up from last week's 2.54 percent.
"Mortgage rates eased somewhat as new home sales fell 7 percent in December to a seasonally adjusted pace of 414,000 units, below the consensus," Frank Nothaft, vice president and chief economist for Freddie Mac, said in a statement. "The S&P/Case-Shiller 20-city composite house price index declined 0.1 percent for the month of November, the first decrease since November 2012."
In addition to residential financing rates, mortgage applications also took a slight dip. According to the Mortgage Bankers Association, these declined 0.2 percent for the week ending Jan. 24, compared to one week prior. The refinance share of mortgage activity also dropped, now only at 62 percent of total applications, as opposed to the 64 percent previously reported.