HSH.com Weekly Mortgage Rates Radar: Mortgage Rates Steady as Fed Expected to Hold Course

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HSH.com releases its latest Weekly Mortgage Rates Radar showing virtually no change in mortgage rates from the previous week. The Weekly Mortgage Rates 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). While rates for fixed-rate mortgages were unchanged, average rates for ARMs moved up slightly during the week ending April 24.

Mortgage rates are mostly wandering around at the moment. It's not clear that even the Fed knows where we'll go from here, and opinions among Fed Governors vary considerably.

Rates on the most popular types of mortgages remained steady in the past week, according to HSH.com's Weekly Mortgage Rates Radar. The average rate for conforming 30-year fixed-rate mortgages was unchanged at 4.00 percent. Conforming 5/1 hybrid ARM rates increased by 3 basis points, closing the Wednesday-to-Tuesday wraparound weekly survey at an average of 2.93 percent.

"Mortgage rates are mostly wandering around at the moment. They have become directionless as markets wait for signals from both the economy and the Federal Reserve before deciding on a path," said Keith Gumbinger, vice president of HSH.com. "It's not clear that even the Fed knows where we'll go from here, and opinions among Fed Governors vary considerably."

The Federal Reserve's ongoing initiative of buying long-term Treasury debt and mortgages, known as Operation Twist, will come to an end in approximately nine weeks, prompting a decision by the Fed on the direction of its quantitative easing initiatives. As the Federal Open Market Committee finishes its scheduled April meeting, it is not expected to announce a substantial change in policy.

"Operation Twist has benefitted mortgage borrowers by keeping rates at or near record lows,” said Gumbinger. “But what will the Fed decide to do next: more of the same, something new or nothing at all? HSH.com's Two-Month Forecast discusses the most likely course and how mortgage rates are expected to move between now and the end of June."

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

Conforming 30-year fixed-rate mortgage

  •     Average rate: 4.00 percent
  •     Average points: 0.23

Conforming 5/1-year adjustable-rate mortgage

  •     Average rate: 2.93 percent
  •     Average points: 0.18

Average mortgage rates and points for conforming residential mortgages for the previous week ending April 17 were, according to HSH.com:

Conforming 30-year fixed-rate mortgage

  •     Average rate: 4.00 percent
  •     Average points: 0.31

Conforming 5/1-year adjustable-rate mortgage

  •     Average rate: 2.90 percent
  •     Average points: 0.22

Methodology
The Weekly Mortgage Rates 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 Rates 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
775-784-3842
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