HSH.com Weekly Mortgage Rate Radar: Rates Rise Again, But Upward Trend Slowed by Fed Assurance

HSH.com releases its latest Weekly Mortgage Rate Radar showing a small increase 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 loan types continued to rise during the week ending March 27.

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Although rates moved upward this week, the size of the increase is small. It appears that the interest rates that most influence mortgages have settled back this week compared to last, so mortgage rates should ease back a little as the week progresses.

Foster City, Calif. (PRWEB) March 28, 2012

Rates on the most popular types of mortgages increased again in the past week, according to HSH.com's Weekly Mortgage Rate Radar. The average rate for conforming 30-year fixed-rate mortgages rose by 3 basis points (0.03 percent) to 4.16 percent. Conforming 5/1 hybrid ARM rates increased by 5 basis points, closing the Wednesday-to-Tuesday wraparound weekly survey at an average of 3.06 percent.

"Although rates moved upward this week, the size of the increase is small," said Keith Gumbinger, vice president of HSH.com. "It appears that the interest rates that most influence mortgages have settled back this week compared to last, so mortgage rates should ease back a little as the week progresses."

A fall in the bond market reflected earlier expectations that the U.S. economy was gaining traction at a faster rate – and that the Federal Reserve might start to increase interest rates sooner than the end of 2014. However, the most recent data suggest that economic growth seems to be flattening somewhat.

"Fed Chairman Bernanke's comments on Monday about keeping interest rates low despite recent gains in the economy calmed the market,” said Gumbinger. “There are still plenty of economic troubles which might push interest rates down or cause the Fed to consider expanding its programs to keep interest rates low."

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

Conforming 30-year fixed-rate mortgage

  •     Average rate: 4.16 percent
  •     Average points: 0.23

Conforming 5/1-year adjustable-rate mortgage

  •     Average rate: 3.06 percent
  •     Average points: 0.19

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

Conforming 30-year fixed-rate mortgage

  •     Average rate: 4.13 percent
  •     Average points: 0.29

Conforming 5/1-year adjustable-rate mortgage

  •     Average rate: 3.01 percent
  •     Average points: 0.23

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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