HSH.com Weekly Mortgage Rates Radar: Rates Ease Slightly, Remain Elevated

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HSH.com releases its latest Weekly Mortgage Rates Radar showing a modest decline 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).

After several strong rises in rates during the past few weeks, markets have calmed somewhat and are now intently watching incoming economic data looking for clues as to when the Fed will start to taper its purchases of mortgages and treasury bonds.

Rates on the most popular types of mortgages eased slightly according to HSH.com's Weekly Mortgage Rates Radar. The average rate for conforming 30-year fixed-rate mortgages declined by four basis points (0.04 percent) to 4.57 percent. Conforming 5/1 Hybrid ARM rates also decreased by four basis points, closing the Wednesday-to-Tuesday wraparound weekly survey at an average of 3.42 percent.

"After several strong rises during the past few weeks, mortgage rates have mostly leveled off," said Keith Gumbinger, vice president of HSH.com. "After a tumultuous period, markets have calmed somewhat and are now intently watching incoming economic data, as is the Fed, looking for clues as to when the Fed will start to taper its purchases of mortgages and treasury bonds."

The Fed has revealed a couple of signals about policy change timing, including an unemployment rate approaching the seven percent mark or inflation running above the Fed's two percent speed limit for a period of time. Neither of those conditions is with us at the moment, and there is some concern about reaching those goals while the economy remains in a muted growth pattern.

"Although there are expectations for faster economic growth later in the year, those forecasts may prove to be optimistic," adds Gumbinger. "Gross Domestic Product for the first quarter was an anemic 1.8 percent, and we may struggle to attain that rate in the second quarter. The economy is moving forward without much momentum, and now has an additional headwind of higher rates and higher gasoline prices. As such, we may not get a burst of growth which compels the Fed to move very quickly. The weeks ahead will be revealing in that regard."

Average mortgage rates and points for conforming residential mortgages for the week ending July 16, according to HSH.com:

Conforming 30-year fixed-rate mortgage

  •     Average rate: 4.57 percent
  •     Average points: 0.24

Conforming 5/1-year adjustable-rate mortgage

  •     Average rate: 3.42 percent
  •     Average points: 0.16

Average mortgage rates and points for conforming residential mortgages for the previous week ending July 09 were, according to HSH.com:

Conforming 30-year fixed-rate mortgage

  •     Average Rate: 4.61 percent
  •     Average Points: 0.21

Conforming 5/1-year adjustable-rate mortgage

  •     Average Rate: 3.46 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.

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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