Freddie Mac: Residential financing rates dip again
Posted on Friday, May 2, 2014 at 9:45:39 AM
The fluctuating housing market and changing economic conditions have led to up-and-down residential financing rates recently, and new data indicates more of the same.
According to Freddie Mac, mortgage rates dipped once more for the week ending May 1. The 30-year fixed-rate mortgage averaged 4.33 percent during that time, down from the week prior. The 15-year FRM also dropped on a weekly basis, now at 3.38 percent.
"Mortgage rates were down slightly following the release of real GDP estimates for the first quarter of the year which rose 0.1 percent and fell well short of market expectations," said Frank Nothaft, chief economist at Freddie Mac. "Meanwhile, the pending home sales index rose in March ending eight consecutive months of decline and the S&P/Case-Shiller 20-city composite house price index rose 12.9 percent over the 12-months ending in February 2014."
In addition, the Mortgage Bankers Association reported that residential financing applications dipped 5.9 percent on a weekly basis. The Refinance Index also dropped, down 7 percent week over week.
Mike Fratantoni, chief economist of the MBA, noted that the market composite index, an indicator of mortgage loan application volume, was at its lowest level since late 2000.