WASHINGTON (10/10/14)--The average 30-year fixed-rate mortgage rate dropped to 4.12% for the week ending Thursday, pushing the rate down to its lowest point in a month, according to numbers from Freddie Mac (MarketWatch Oct. 9).
Last week the rate stood at 4.19%, and year-over-year the rate is down from 4.23%.
"Fixed mortgage rates were down on a week filled with bleak forward projections from the Federal Reserve and concern over growth in Europe," said Frank Northaft, Freddie Mac's chief economist (MarketWatch).
The average rate for 15-year fixed-rate mortgages slipped to 3.3% from 3.36% the week prior, MarketWatch reported. Further, the rate for 5-year Treasury-indexed hybrid adjustable-rate mortgages inched down to 3.05% from 3.06%.
While mortgages are still weak, mortgage application activity actually rose by 3.8% for the week that ended Oct. 3, according to the Mortgage Bankers Association's (MBA) weekly mortgage application survey.
Purchase applications rose 2.4% for the week and have increased by 3% over the past month. But they sit 11.3% lower on an annual basis.
Refinance applications climbed by 5% during the week, but have fallen 1.7% over the past month and come in 30% lower than levels seen this time last year.
"On a 12-week moving average basis, the purchase index rests at 167.3, no better than where it was four years ago," said Michael McGrane, Moody's analyst (Economy.com Oct. 8). "Meanwhile, the pace of refinance activity has stabilized, but is 70% below where it was in May 2013, right before interest rates spiked upward because of comments by the Federal Reserve regarding monetary tightening."
Similar to Freddie Mac, the MBA also reported declining 30-year fixed-rate mortgage rates.