HSH.com Weekly Mortgage Rates Radar: Mortgage Rates Continue Retreat

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HSH.com releases its latest Weekly Mortgage Rates Radar showing declines 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). Average rates continued downward during the week ending September 04, 2012.

Fixed mortgage rates are again very close to record low levels. Hybrid ARMs are already at new lows. After a brief flare higher in August, mortgage rates have settled back, driven there by the realities of a soft economy showing few signs of acceleration.

Rates on the most popular types of mortgages fell for a second consecutive week according to HSH.com's Weekly Mortgage Rates Radar. The average rate for conforming 30-year fixed-rate mortgages fell by three basis points (0.03 percent) to 3.71 percent. Conforming 5/1 Hybrid ARM rates decreased by five basis points, closing the Wednesday-to-Tuesday wraparound weekly survey at an average of 2.71 percent.

"Fixed mortgage rates are again very close to record low levels," said Keith Gumbinger, vice president of HSH.com. "Hybrid ARMs are already at new lows. After a brief flare higher in August, mortgage rates have settled back, driven there by the realities of a soft economy showing few signs of acceleration."

In a speech last week, Federal Reserve Chairman Bernanke reiterated that the Fed stands ready to adjust policies as needed to foster stronger economic growth and improve poor hiring patterns. However, it remains unclear what they intend to do, when they intend to do it and how much benefit would accrue from such a change.

"Could the Fed make a move? Certainly it's possible," noted Gumbinger. "However, there is a question as to whether even lower record-low long term interest rates and mortgage rates are the solution to the economic trouble in which we find ourselves. For many potential borrowers it's more about access to money than the price of it, and there are many interest rates which have proven largely immune to the Fed's moves, including credit cards, small business loans, home equity loans and lines, and others."

Average mortgage rates and points for conforming residential mortgages for the week ending September 4, according to HSH.com:

Conforming 30-year fixed-rate mortgage

  •     Average rate: 3.71 percent
  •     Average points: 0.23

Conforming 5/1-year adjustable-rate mortgage

  •     Average rate: 2.71 percent
  •     Average points: 0.19

Average mortgage rates and points for conforming residential mortgages for the previous week ending August 28 were, according to HSH.com:

Conforming 30-year fixed-rate mortgage

  •     Average Rate: 3.74 percent
  •     Average Points: 0.24

Conforming 5/1-year adjustable-rate mortgage

  •     Average Rate: 2.76 percent
  •     Average Points: 0.20

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 Riverdale, 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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Andrew Heilman
775-784-3842
pr(at)hsh(dot)com

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HSH.com
775-784-3842
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