Freddie Mac: Slight uptick for fixed-rate mortgages
Posted on Thursday, August 7, 2014 at 10:06:49 AM
This year has been relatively strong when it comes to residential financing rates. While a recent report from government-sponsored enterprise Freddie Mac indicated that fixed-rate mortgages did tick up slightly, overall they remained close to yearly lows.
This is good news for homebuyers, as lower rates can lead to an increase in affordability. According to Freddie Mac, the 30-year FRM averaged 4.14 percent for the week ending Aug. 7, compared to last week's 4.12 percent. The 15-year FRM, on the other hand, averaged 3.27 percent during this past seven-day period, up from 3.23 percent. Both adjustable-rate variants climbed down on a weekly basis.
"Mortgage rates were little changed amid a week of light economic reports," explained Frank Nothaft, vice president and chief economist at Freddie Mac. "Of the few releases, ISM non-manufacturing index rose to 58.7 in July from 56.0 a month earlier. Also, factory orders were up 1.1 percent in June. The two reports signal steady economic growth in the third quarter of the year."
In addition, the Mortgage Bankers Association reported that applications for residential financing increased from the last week in July to Aug. 1. The organization's Market Composite Index found that applications surged 1.6 percent during that time.