HSH.com Weekly Mortgage Rate Radar: Mortgage Rates Retreat Again on Tepid Fed Predictions

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HSH.com releases its latest Weekly Mortgage Rate Radar showing a decline 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 eased during the week ending January 31.

That Fed members expect low short-term rates to persist well into 2014 is a sign that weak economic growth will be with us for some time yet to come.

After a recent upward blip, rates on the most popular types of mortgages retreated again this week, according to HSH.com's Weekly Mortgage Rate Radar. The average rate for conforming 30-year fixed-rate mortgages fell by 5 basis points (0.05 percent) to 4.03 percent. Conforming 5/1 hybrid ARM rates decreased by a single basis point, closing the Wednesday-to-Tuesday wraparound weekly survey at an average of 2.99 percent. These average rates remain barely above record lows.

Slow economic growth in the U.S. and abroad has had a dampening effect on both inflation and interest rates. “Optimism about the direction of the economy was dimmed somewhat after the Federal Reserve meeting last week,” said Keith Gumbinger, vice president of HSH.com. "That Fed members expect low short-term rates to persist well into 2014 is a sign that weak economic growth will be with us for some time yet to come.”

“There is some growing speculation that the Fed may again be called upon to provide additional support for the economy in the form of a new mortgage or Treasury bond-buying program at some point this year,” said Gumbinger. “Any move would further underscore how poorly the economy is performing, but might foster even lower mortgage rates, should it come."

Average mortgage rates and points for conforming residential mortgages for the week ending January 31 were, according to HSH.com:

Conforming 30-year fixed-rate mortgage

  •     Average rate: 4.03 percent
  •     Average points: 0.24

Conforming 5/1-year adjustable-rate mortgage

  •     Average rate: 2.99 percent
  •     Average points: 0.21

Average mortgage rates and points for conforming residential mortgages for the previous week ending January 24 were, according to HSH.com:

Conforming 30-year fixed-rate mortgage

  •     Average rate: 4.08 percent
  •     Average points: 0.25

Conforming 5/1-year adjustable-rate mortgage

  •     Average rate: 3.00 percent
  •     Average points: 0.22

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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HSH.com
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