HSH.com Weekly Mortgage Rate Radar: Mortgage Rates “Twist” to New Record Lows

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HSH.com releases its latest Weekly Mortgage Rate Radar showing a decline in rates for fixed-rate mortgages on the heels of the Federal Reserve’s announced activity. With this decline, mortgage rates once again reached record lows. 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 fixed-rate mortgages declined, while ARM rates were unchanged during the week ending September 27.

The Federal Reserve introduced both ‘Operation Twist’ and a new mortgage-backed securities purchasing program last week. These programs are to drive down market interest rates for business borrowers and mortgage rates for homebuyers and refinancers.

Rates on the most popular types of mortgages moved lower once again, according to HSH.com's Weekly Mortgage Rate Radar. The average rate for conforming 30-year fixed-rate mortgages fell by 8 basis points (0.08 percent) to 4.13 percent. Conforming 5/1 hybrid ARM rates remained unchanged, closing the Wednesday-to-Tuesday wraparound weekly survey at an average of 3.01 percent.

“The Federal Reserve introduced both ‘Operation Twist’ and a new mortgage-backed securities purchasing program last week,” said Keith Gumbinger, HSH.com’s vice president. “These programs are to drive down market interest rates for business borrowers and mortgage rates for homebuyers and refinancers. So far, there has been at least some of the desired effect.”

Lower rates may help spur some additional economic growth, notes Gumbinger, “but if the programs are successful, the economy will begin to grow more strongly, and that would tend to firm up interest rates over time. As such, the lowest mortgage rates as a result of the Fed program are likely to come sooner than later.”

Average mortgage rates and points for conforming residential mortgages for the week ending September 27 were, according to HSH.com:

Conforming 30-year fixed-rate mortgage

  •     Average rate: 4.13 percent
  •     Average points: 0.25

Conforming 5/1 ARM

  •     Average rate: 3.01 percent
  •     Average points: 0.21

Average mortgage rates and points for conforming residential mortgages for the previous week ending September 20 were, according to HSH.com:

Conforming 30-year fixed-rate mortgage

  •     Average rate: 4.21 percent
  •     Average points: 0.31

Conforming 5/1 ARM

  •     Average rate: 3.01 percent
  •     Average points: 0.24

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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