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Freddie Mac: Residential financing rates drop on weekly basis

Posted on Thursday, July 17, 2014 at 10:08:58 AM

Another week, another report of residential financing rates hovering near historic lows. According to recent data from the government-sponsored enterprise Freddie Mac, average rates have decreased slightly on a weekly basis.

The 30-year fixed-rate mortgage averaged 4.13 percent for the seven-day period ending July 17, compared to last week's 4.15 percent, Freddie Mac noted. The 15-year FRM also ticked down, now at 3.23 percent as opposed to 3.24 percent. Both adjustable-rate variants also decreased during that time span.

"Mortgage rates were little changed amid a week of light economic reports," explained Frank Nothaft, chief economist and vice president of Freddie Mac. "Of the few releases, industrial production rose by 0.2 percent in June, below the market consensus forecast. Also, the producer price index for final demand rose 0.4 percent in June, rebounding from a 0.2 percent decline the prior month."

In addition, the Mortgage Bankers Association reported that interest in residential financing has slipped for the week ending July 11. Mortgage applications dropped 3.6 percent on a weekly basis, with adjustable-rate mortgages accounting for 8 percent of all financing types. The refinance share of mortgage activity climbed 2 percent, now at 54 percent of total applications.