Residential financing rates remain stable despite mixed housing reports
Posted on Thursday, October 2, 2014 at 10:14:40 AM
The last few weeks have been accompanied by mixed housing reports, with data showing conditions slightly weaker than earlier in the year. Even so, residential financing rates have avoided a significant increase due to these changes.
According to Freddie Mac, the 30-year fixed-rate mortgage averaged 4.19 percent for the week ending Oct. 2, a slight decrease compared to the previous seven-day period's 4.20 percent. The 15-year FRM averaged 3.36 percent this past week, unchanged on a weekly basis. Both adjustable-rate variants recorded small decreases during this time.
"Mortgage rates were flat to slightly down across the board as GDP was revised up from 4.2 percent to 4.6 percent for the second quarter and the S&P/Case-Shiller National House Price Index was up a seasonally adjusted 0.2 percent for July and up 5.6 percent from the prior July," explained Frank Nothaft, vice president and chief economist for Freddie Mac. "Pending home sales data were less optimistic, though, down 1 percent in August."
In addition to these trends, the Mortgage Bankers Association reported that residential financing applications dropped 0.2 percent for the week ending Sept. 26, compared to the previous seven-day period. Out of all applications during this time, the refinance share held steady at 56 percent, while ARMs made up only 7.6 percent of the total.