Freddie Mac: Another decrease noted for fixed-rate mortgages
Posted on Thursday, August 14, 2014 at 1:38:20 PM
This year has seen residential financing rates hover near historic lows, helping potential homebuyers get the capital they need to pursue a new property. According to Freddie Mac, fixed-rate mortgages ticked down once again, providing another boost to affordability.
For the week ending Aug. 14, the 30-year FRM averaged 4.12 percent, compared to 4.14 percent from the previous seven-day period. The 15-year FRM also declined, now at 3.24 percent compared to 3.27 percent.
"Mortgage rates were down slightly amid a week of light economic reports," explained Frank Nothaft, vice president and chief economist for Freddie Mac. "Of the few releases, retail sales were virtually unchanged in July after a 0.2 percent increase in June, ending five months of increases. Excluding motor vehicles and parts, retail sales were up 0.1 percent last month."
According to the Mortgage Bankers Association, interest in residential financing also moved down on a weekly basis. Mortgage applications dropped 2.7 percent for the week ending Aug. 8, while the Refinance Index ticked down 4 percent on a weekly basis.
Overall, refinances made up 54 percent of total applications during that time period.