HSH.com Weekly Mortgage Rates Radar: Rates Retreat as Economic Worries Intensify

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HSH.com releases its latest Weekly Mortgage Rates Radar findings show a decline in mortgage rates from the previous week. The Weekly Mortgage Rates radar reports lenders’ average rates and points for the two most popular mortgage types, the conforming 30-year fixed-rate mortgage and the conforming 5/1 adjustable-rate mortgage (ARM). Average rates for both products moved deeper into record-low territory during the week ending July 24.

There has been very little good news to counterbalance all the troubles in the headlines. If economic growth doesn't show signs of improving before too much longer, the Fed may be forced to take action to shore up the economy.

Rates on the most popular types of mortgages declined this week, according to HSH.com's Weekly Mortgage Rates Radar. The average rate for conforming 30-year fixed-rate mortgages fell by four basis points (0.04 percent) to 3.66 percent. Conforming 5/1 Hybrid ARM rates decreased by five basis points, closing the Wednesday-to-Tuesday wraparound weekly survey at an average of 2.73 percent.

"The economic news continues to be tilted in a downward direction," said Keith Gumbinger, vice president of HSH.com. "Additionally, fresh worries about Spain's ability to manage its fiscal troubles gives global investors more reasons to pump money into the safety of US Treasury debt, driving yields lower."

While not currently the lockstep arrangement seen in the past, yields on Treasury bonds influence fixed-rate mortgage interest rates both upward and downward.

"Excepting a modestly improving housing market, there has been very little good news to counterbalance all the troubles in the headlines. If economic growth doesn't show signs of improving before too much longer, the Federal Reserve may be forced to take action to shore up the economy”, Gumbinger explains. “However, with interest rates already at record lows, there may be little additional punch from further declines."

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

Conforming 30-year fixed-rate mortgage

  •     Average rate: 3.66 percent
  •     Average points: 0.29

Conforming 5/1-year adjustable-rate mortgage

  •     Average rate: 2.73 percent
  •     Average points: 0.23

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

Conforming 30-year fixed-rate mortgage

  •     Average Rate: 3.70 percent
  •     Average Points: 0.26

Conforming 5/1-year adjustable-rate mortgage

  •     Average Rate: 2.78 percent
  •     Average Points: 0.24

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 best meet their needs. The company is a leader in ethical marketing practices. For more information, please visit QuinStreet.com.
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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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