HSH.com Weekly Mortgage Rates Radar: Fixed Rates Edge to New Low After Fed Move

Share Article

HSH.com releases its latest Weekly Mortgage Rates Radar showing a decline in fixed mortgage rates from the previous week, while ARMs nudged higher. 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 were mixed during the week ending September 18.

The Federal Reserve has aimed their efforts squarely at the mortgage market. They will be buying up to $40 billion of Mortgage-Backed Securities monthly in an effort to drive mortgage rates lower and it looks as though we started on that path this week.

Rates on the most popular types of mortgages moved in different directions this week according to HSH.com's Weekly Mortgage Rates Radar. The average rate for conforming 30-year fixed-rate mortgages fell by five basis points (0.05 percent) to 3.64 percent, a new record low. Conforming 5/1 Hybrid ARM rates increased by a single basis point, closing the Wednesday-to-Tuesday wraparound weekly survey at average 2.70 percent.

"The Federal Reserve has aimed their efforts squarely at the mortgage market," said Keith Gumbinger, vice president of HSH.com. "They will be buying up to $40 billion of Mortgage-Backed Securities monthly in an effort to drive mortgage rates lower. The overall effect on rates might prove to be as much as a quarter percentage point in time, and it looks as though we started on that path this week."

There are likely a number of possible reasons for the Fed's move, each of which is discussed thoroughly in HSH.com's latest Market Trends newsletter.

Mortgage rates might not immediately plummet, though. "There are a number of factors which might keep lower rates from being passed down to borrowers more rapidly," noted Gumbinger. "For one, lenders can't handle any significant increase in volume at the moment, and don't need to price more aggressively to attract business, not with rates near sixty-year lows. Another is the forthcoming increase in the cost lenders will be charged to have their loans guaranteed by Fannie Mae or Freddie Mac. That said, if the Fed wants to see lower rates, it will probably get them in the end."

Average mortgage rates and points for conforming residential mortgages for the week ending September 18, according to HSH.com:

Conforming 30-year fixed-rate mortgage

  •     Average rate: 3.64 percent
  •     Average points: 0.27

Conforming 5/1-year adjustable-rate mortgage

  •     Average rate: 2.70 percent
  •     Average points: 0.25

Average mortgage rates and points for conforming residential mortgages for the previous week ending September 11 were, according to HSH.com:

Conforming 30-year fixed-rate mortgage

  •     Average Rate: 3.69 percent
  •     Average Points: 0.30

Conforming 5/1-year adjustable-rate mortgage

  •     Average Rate: 2.69 percent
  •     Average Points: 0.23

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.

Press Contact:
Andrew Heilman
775-784-3842
pr(at)hsh(dot)com

Share article on social media or email:

View article via:

Pdf Print

Contact Author

Andrew Heilman
HSH.com
775-784-3842
Email >
Follow us on
Visit website