Positive residential financing trends appear across US
Posted on Thursday, April 10, 2014 at 10:25:26 AM
The past several weeks have brought along higher residential financing rates and a smaller number of mortgage applications, according to several industry reports. However, some of these statistics have recently changed, which is good news for all those interested in the U.S. housing market.
For example, the 30-year fixed-rate mortgage averaged only 4.34 percent for the week ending April 10, based on Freddie Mac's Primary Mortgage Market Survey. That is down from last week's 4.41 percent. The 15-year FRM also declined, now at 3.38 percent compared to the previous reading of 3.47 percent.
"Mortgage rates eased a bit following the decline in 10-year Treasury yields," explained Frank Nothaft, vice president and chief economist at Freddie Mac. "Also, the economy added 192,000 jobs in March, which was below the market consensus forecast but followed an upward revision of 22,000 jobs in February. Meanwhile, the unemployment rate held steady at 6.7 percent."
In addition, interest in affordable residential financing is holding steady, albeit down slightly week-over-week. According to the Mortgage Bankers Association, mortgage applications decreased 1.6 percent for the week ending April 4. On the other hand, the seasonally adjusted Purchase Index increased 3 percent from one week prior, as did the unadjusted Purchase Index.