Freddie Mac: Little change for fixed-rate mortgages
Posted on Thursday, September 4, 2014 at 10:20:37 AM
Residential financing rates are closely tied to the U.S. economy, and with few changes reported recently, rates have avoided a major increase and remained close to historic lows.
According to Freddie Mac, the 30-year fixed-rate mortgage averaged 4.10 percent for the week ending Sept. 4. That is the same as it was the week prior. The 15-year FRM, on the other hand, managed a 0.1 percent decrease during that time, down from 3.25 percent to 3.24 percent.
"Mortgage rates were little changed amid a week of light economic reports," explained Frank Nothaft, vice president and chief economist for Freddie Mac. "The 30-year fixed-rate mortgage rate remained unchanged from the previous week at 4.10 percent. Of the few releases, the ISM's manufacturing index rose to 59.0 in August from 57.1 the previous month. This was the highest reading of the index since March 2011."
In addition, the Mortgage Bankers Association reported that interest in residential financing did increase for the week ending Aug. 29 compared to the previous seven-day period. Mortgage applications ticked up 0.2 percent during that time span, while the Refinance Index - a measure of refinance activity - climbed 1 percent on a weekly basis. The overall refinance share of total mortgage activity reached 57 percent.