Light economic reports lead to higher residential financing rates
Posted on Thursday, March 13, 2014 at 10:16:47 AM
Residential financing rates took a turn up over the past week, with figures for both the fixed-rates and some adjustable-rate variants increasing, according to Freddie Mac's recent Primary Mortgage Market Survey.
According to the government enterprise, the 30-year fixed-rate mortgage averaged 4.37 percent for the week ending March 13, an increase from last week when it averaged 4.28 percent. In addition, the 15-year FRM averaged 3.38 percent during that time, up from its previous average of 3.32 percent. The five-year and one-year Treasury-indexed hybrid adjustable-rate mortgages averaged 3.09 percent and 2.48 percent, respectively.
Frank Nothaft, chief economist and vice president at Freddie Mac, noted that these changes were likely caused by light economic reports and a slightly higher unemployment rate. He also pointed to the nearly 175,000 new jobs created during February.
Moreover, the Mortgage Bankers Association reported that residential financing applications decreased for the week ending March 7. On a week-over-week basis, the number declined 2.1 percent, according to the entity's Weekly Mortgage Applications Survey. In addition, the refinance share of mortgage activity also dropped, down to 57 percent of total applications. That represents its lowest level since April 2011.