HSH.com Weekly Mortgage Rate Radar: Mortgage Rates Steady But Expected to Fall on Greek Bailout Uncertainty

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HSH.com releases its latest Weekly Mortgage Rate Radar showing a tiny drop in mortgage rates from the previous week. The Weekly Mortgage Rate Radar reports the average rates and points offered by lenders for the two most popular types of mortgages, the conforming 30-year fixed-rate mortgage and the conforming 5/1 adjustable-rate mortgage (ARM). Average rates for both types of loans barely slipped lower during the week ending November 1 and are expected to drop further.

While mortgage rates have held fairly steady, two big factors - uncertainty over Greek default and Federal Reserve policy - will likely drive them down in the coming days.

Rates on the most popular types of mortgages eased by a small amount this week, according to HSH.com’s Weekly Mortgage Rate Radar. The average rate for conforming 30-year fixed-rate mortgages fell by a single basis point (0.01 percent) to 4.22 percent. Conforming 5/1 hybrid ARM rates also fell by 1 basis point, closing the Wednesday-to-Tuesday wraparound weekly survey at an average of 3.07 percent.

“While mortgage rates are pretty steady so far this week, there are several reasons to expect them to decline somewhat by week’s end,” predicted Keith Gumbinger, vice president of HSH.com.

“It would appear that the Greek bailout plan isn’t going very smoothly, causing nervous investors to plow money back into Treasurys, which drives down rates,” Gumbinger said. “Couple that with a Federal Reserve which seems to be leaning toward additional future support for the mortgage market, and mortgage interest rates will have a hard time holding these levels.” Mortgage rates had risen slightly above record lows a few weeks ago.

Average mortgage rates and points for conforming residential mortgages for the week ending November 1 were, according to HSH.com:

Conforming 30-year fixed-rate mortgage

  •     Average rate: 4.22 percent
  •     Average points: 0.27

Conforming 5/1 ARM

  •     Average rate: 3.07 percent
  •     Average points: 0.23

Average mortgage rates and points for conforming residential mortgages for the previous week ending October 25 were, according to HSH.com:

Conforming 30-year fixed-rate mortgage

  •     Average rate: 4.23 percent
  •     Average points: 0.34

Conforming 5/1 ARM

  •     Average rate: 3.08 percent
  •     Average points: 0.28

Methodology
The Weekly Mortgage Rate Radar reports the average rates and points offered on conforming 30-year fixed-rate mortgages and conforming 5/1 ARMs. The weekly mortgage rate survey covers a large sample of mortgage lenders and is conducted over a Wednesday-to-Tuesday cycle, with data released every Wednesday. HSH.com’s survey helps consumers find the best rates on home loans in changing market conditions. Unlike mortgage rate surveys that report average rates only, the Weekly Mortgage Rate Radar’s inclusion of both average rates and average points provides a more accurate view of mortgage terms currently offered by lenders.

Every week, HSH.com conducts a survey of mortgage rate data for a wide range of consumer mortgage products including ARMs, FHA-backed and jumbo mortgages, as well as home equity loans and lines of credit from hundreds of direct lenders in the U.S. For information on additional loan products, visit HSH.com.

About HSH.com
HSH.com is a trusted source of mortgage data, trends, news and analysis. Since 1979, HSH’s market research and commentary has helped homeowners, buyers and sellers make smart financial choices and save money on mortgage and home equity products. HSH.com, of Pompton Plains, N.J., is owned and operated by QuinStreet, Inc. (NASDAQ: QNST), one of the largest Internet marketing and media companies in the world. QuinStreet is committed to providing consumers and businesses with the information they need to research, find and select the products, services and brands that meet their needs. The company is a leader in visitor-friendly marketing practices. For more information, please visit QuinStreet.com.

Press Contact
Andrew Heilman
775-784-3842
pr(at)hsh(dot)com

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