HSH.com Weekly Mortgage Rates Radar: Mortgage Rates Fall with Employment Disappointment

HSH.com releases its latest Weekly Mortgage Rates Radar showing the largest weekly decline in the 30-year FRM since late October, as the December employment report injected some doubts about the strength of the economy at year end. 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).

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The soft employment report for December is a bit of a two-edged sword, as it brings lower mortgage rates to homeowners looking to refinance and homebuyers looking to get deals in place, but comes at the expense of the broader economy and job seekers.

Foster City, Calif. (PRWEB) January 15, 2014

Rates on the most popular types of mortgages moved down notably this week, according to HSH.com's Weekly Mortgage Rates Radar. The average rate for conforming 30-year fixed-rate mortgages fell by eight basis points (0.08 percent) to 4.53 percent. Conforming 5/1 Hybrid ARM rates decreased by seven basis points, closing the Wednesday-to-Tuesday wraparound weekly survey at an average of 3.26 percent.

"Just as the economy was performing reliably, even gaining momentum, a report came that took some of the wind out of the sails," said Keith Gumbinger, vice president of HSH.com. "The soft employment report for December is a bit of a two-edged sword, as it brings lower mortgage rates to homeowners looking to refinance and homebuyers looking to get deals in place, but comes at the expense of the broader economy, especially people looking for a job."

About 1.3 million Americans saw their unemployment benefits expire at the end of December, so the weak pace of hiring seems even more painful. With new mortgage rules in place, borrowers usually need at least two years' worth of income documentation to be able to qualify for a mortgage, and bouts of unemployment and periods with no income make it that much more difficult for people hoping to buy or refinance a home sometime soon.

"Low mortgage rates are little more than an attractive nuisance if you can't qualify for a loan," notes Gumbinger. "Here's hoping that the dip in new hiring turns out to be just a blip in an otherwise fair pattern, or we may not see the kind of housing market in 2014 we are hoping to see."

Average mortgage rates and points for conforming residential mortgages for the week ending January 14, according to HSH.com:

Conforming 30-year fixed-rate mortgage
Average rate: 4.53 percent
Average points: 0.18

Conforming 5/1-year adjustable-rate mortgage
Average rate: 3.26 percent
Average points: 0.13

Average mortgage rates and points for conforming residential mortgages for the previous week ending January 07 were, according to HSH.com:

Conforming 30-year fixed-rate mortgage
Average Rate: 4.61 percent
Average Points: 0.19

Conforming 5/1-year adjustable-rate mortgage
Average Rate: 3.33 percent
Average Points: 0.11

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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