Residential financing rates, applications tick down once more
Posted on Thursday, June 19, 2014 at 10:01:18 AM
For homebuyers across the country, the decision to move forward with a purchase often hinges on residential financing rates. Thankfully, conditions have continued to be extremely favorable over the past several months.
According to Freddie Mac, mortgage rates ticked down once more for the week ending June 19. Now, the 30-year fixed-rate mortgage averaged 4.17 percent compared to the previous week's 4.20 percent. The 15-year FRM averaged 3.30 percent during that time, also a small decrease.
"Mortgage rates were down slightly for the week ending on June 19, 2014," explained Frank Nothaft, chief economist and vice president at Freddie Mac. "Meanwhile, housing starts in May were 6.5 percent below the revised April rate. Following a similar pattern, building permits fell 6.4 percent in May after a 5.9 percent increase a month earlier. Also, CPI rose 0.4 percent in May, more than expected, following a 0.3 percent rise in April."
In addition to this trend, residential financing applications also decreased on a weekly basis in June, according to the Mortgage Bankers Association. The Market Composite Index, which calculates loan applications volume, slipped 9.2 percent for the week ending June 13. The Refinance Index declined 13 percent.