HSH.Com Weekly Mortgage Rates Radar: Rates Fall as Fed Forgoes Tapering
Foster City, Calif. (PRWEB) September 25, 2013 -- Rates on the most popular types of mortgages declined considerably according to HSH.com's Weekly Mortgage Rates Radar. The average rate for conforming 30-year fixed-rate mortgages fell by sixteen basis points (0.16 percent) to 4.49 percent. Conforming 5/1 Hybrid ARM rates decreased by thirteen basis points (0.13 percent), closing the Wednesday-to-Tuesday wraparound weekly survey at an average of 3.31 percent.
"After hearing about rising mortgage rates for months, consumers should welcome the news of a decline," said Keith Gumbinger, vice president of HSH.com. "The Federal Reserve's decision to keep its quantitative easing programs running for at least a while longer allowed mortgage and bond markets a chance to relax and interest rates to fall, at least for a little while."
The Fed had been widely expected to pull back on its purchases of Treasury and mortgage bonds, but decided that the slow and uneven economic recovery warranted continuing support. The Fed has said on several occasions that it would like to taper these purchases, but that it will only do so in the context of a warming economy in which inflation remains tame and the unemployment rate has fallen closer to an even 7 percent.
"Mortgage rates have moved downward, and probably will for at least a few more days," said Gumbinger. "After that, they are likely to level off, and if the incoming economic data continues to have a warmer tone to it, we expect that they will again firm up a little as we approach the next Fed meeting at the end of October, so potential borrowers should not delay too long in getting a deal in place."
Average mortgage rates and points for conforming residential mortgages for the week, ending September 24, according to HSH.com:
Conforming 30-year fixed-rate mortgage
- Average rate: 4.49 percent
- Average points: 0.20
Conforming 5/1-year adjustable-rate mortgage
- Average rate: 3.31 percent
- Average points: 0.12
Average mortgage rates and points for conforming residential mortgages for the previous week, ending September 17 were, according to HSH.com:
Conforming 30-year fixed-rate mortgage
- Average Rate: 4.65 percent
- Average Points: 0.22
Conforming 5/1-year adjustable-rate mortgage
- Average Rate: 3.44 percent
- Average Points: 0.13
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
Robert Beaupre
775-784-3851
rbeaupre(at)quinstreet(dot)com
Ellen Cannon, HSH.com, 650-578-6888, [email protected]
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