November 14th, 2014 8:56 AM by Jackie A. Graves, President
offering 30-year fixed mortgages to solid borrowers this week at an average of
4.01%, a Freddie Mac survey found, down a hair from 4.02% last week.
Rates tend to rise when the economy grows
quickly, but a key indicator this week, the October unemployment report,
contained “mixed results,” said Freddie Mac’s chief economist, Frank Nothaft.
“While the unemployment rate declined to
5.8%, nonfarm employment rose by 214,000 jobs, which was below consensus
expectations,” Nothaft said.
The average for 30-year home loans dipped
below 4% for three weeks last month, setting off a small wave of mortgage
Requests to refinance homes made up 63% of
all mortgage applications last week, according to the
Mortgage Bankers Assn.
Freddie Mac asks lenders early each week
about the terms they are offering to lower-risk borrowers on loans of up to
The borrowers typically would have paid half
of a percentage point in lender fees and discount points to obtain the loans.
The survey excludes costs for third-party
services that borrowers usually pay, such as appraisals and title insurance.
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