Residential financing rates experience small uptick, Freddie Mac says
Posted on Friday, February 21, 2014 at 8:41:48 AM
One of the positives over the past year for the U.S. housing market has been historically low residential financing rates, providing a silver lining for homebuyers as other economic factors fluctuated.
According to a recent Freddie Mac Primary Mortgage Market report, however, the current 30-year fixed-rate mortgage reading was slightly higher on a weekly basis for the week ending Feb. 20. Now, it averaged 4.33 percent, compared to 4.28 percent. The 15-year FRM also increased slightly, as did both types of Treasury-indexed hybrid adjustable-rate mortgages.
Frank Nothaft, vice president and chief economist at Freddie Mac, attributed the changes to possible shifts in the Federal Reserve's policies and slower housing starts, among other factors.
In addition to the rise in residential financing rates, the Mortgage Bankers Association reported that both delinquency and foreclosure rates declined at the end of the fourth quarter in 2013, hitting lows last seen at the beginning of 2008. During that time span, the percentage of loans in the foreclosure process declined 22 basis points quarter-over-quarter, and 88 basis points compared to the same time the year prior. All of these improvements are good news for homebuyers and sellers alike.