Residential financing rates remain affordable for nation's homebuyers
Posted on Thursday, July 3, 2014 at 10:22:33 AM
Residential financing rates have maintained their recent lows ahead of the Fourth of July holiday weekend, according to a recent report from government-sponsored enterprise Freddie Mac.
The 30-year fixed-rate mortgage averaged only 4.12 percent for the week ending July 3. At the same time last year, that rate was 4.29 percent. The 15-year FRM experienced a similar year-over-year drop, now at 3.22 percent compared to 2013's 3.39 percent. Both adjustable-rate variants had similar averages to their previous week's figures.
"Mortgage rates were little changed from the previous week and remain below levels seen the same time last year, which should provide some help with homebuyer affordability in many markets," explained Frank Nothaft, vice president and chief economist at Freddie Mac. "Recent housing data was better with pending home sales up 6.1 percent in May and overall construction spending showing a slight improvement with private residential spending now up 7.5 percent on yearly basis."
In addition, the Mortgage Bankers Association reported that residential financing applications ticked down slightly on a weekly basis in late June, down 0.2 percent for the week ending June 27. The refinance share of mortgage activity, on the other hand, grew to 53 percent of total applications.