Yearly lows back in sight for residential financing rates
Posted on Thursday, October 9, 2014 at 10:09:43 AM
It has been a little while since the low point for residential financing rates in 2014, but a substantial decrease experienced this past week has put those figures back in sight.
According to Freddie Mac, the 30-year fixed-rate mortgage averaged 4.12 percent for the week ending Oct. 9. This time last week, the rate averaged 4.19 percent, and 4.23 percent at the same time in 2013. The 15-year FRM also dropped, now at 3.30 percent this week compared to the previous seven-day period's 3.36 percent. Neither variant of adjustable-rate mortgages experienced a weekly increase, either.
"Fixed mortgage rates were down on a week filled with bleak forward projections from the Federal Reserve and concern over growth in Europe," explained Frank Nothaft, chief economist and vice president at Freddie Mac. "Despite gloomy vernacular from the Fed, mortgage purchase applications were up 2 percent on the week and the labor market added 248,000 jobs, beating expectations and lowering headline unemployment to 5.9 percent."
In addition, the Mortgage Bankers Association reported that residential financing applications ticked up, a sign that more homebuyers are looking for mortgages. Data from the Weekly Mortgage Applications Survey found that applications increased 3.8 percent on a weekly basis for the seven-day period ending Oct. 3. The refinance share of activity held steady at 56 percent.