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Homebuyer affordability remains high as residential financing interest climbs

Posted on Thursday, July 24, 2014 at 10:26:16 AM

Over the past several months, residential financing rates have remained low, increasing homebuyer affordability and driving up interest in mortgages.

According to Freddie Mac, average fixed rates were little changed on a weekly basis for the seven-day period ending July 24. The 30-year fixed-rate mortgage averaged 4.13 percent, while the 15-year FRM averaged 3.26 percent. These rates are still considered low on a historical level, opening up more doors for those interested in buying a house.

"Mortgage rates were little changed for the week with the 30-year fixed-rate mortgage remaining unchanged," explained Frank Nothaft, chief economist and vice president at Freddie Mac. "Meanwhile, we received some good news on housing with existing home sales climbing 2.6 percent to a seasonally adjusted annual rate of 5.04 million in June, the highest pace since October 2013."

In addition, the Mortgage Bankers Association reported that interest in residential financing is also on the way up. For the week ending July 18, mortgage applications rose 2.4 percent from the previous seven-day period. More people have been looking into refinancing, as well, as the refinance share of mortgage activity climbed to 54.4 percent of all applications, up from last week's 53.6 percent.