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Residential financing rates continue week-over-week decline

Posted on Thursday, May 29, 2014 at 11:07:40 AM

At the start of 2014, residential financing rates appeared to be climbing upward. However, this past month has seen that trend reverse, and instead mortgage rates have been on a steady, downward trajectory.

According to Freddie Mac, the 30-year fixed-rate mortgage averaged 4.12 percent for the week ending May 29, a slight drop compared to last week's figure. The 15-year FRM also slipped, now at 3.21 percent. However, during the same time last year, the rate averaged 2.98 percent. 

"Fixed mortgage rates eased a bit for the fifth consecutive week as reports that existing home sales are up 1.3 percent but not as much as expected," said Frank Nothaft, chief economist and vice president of Freddie Mac. "However, new home sales rose 6.4 percent in April to a seasonally adjusted annual rate of 433,000, which followed an upward revision of 11,000 units for the prior two months."

In addition, the Mortgage Bankers Association reported that residential financing applications also dropped on a weekly basis near the end of May. The Market Composite Index declined 1.2 percent for the week ending May 23, while the unadjusted Purchase Index ticked down 2 percent.