HSH.com Weekly Mortgage Rates Radar: Fixed Mortgage Rate Decline Stalls
Foster City, Calif. (PRWEB) February 12, 2014 -- Rates on the most popular types of mortgages moved in opposite directions this week according to HSH.com's Weekly Mortgage Rates Radar. The average rate for conforming 30-year fixed-rate mortgages rose by a single basis point (0.01 percent) to 4.38 percent. Conforming 5/1 Hybrid ARM rates decreased by two basis points (0.02 percent), closing the Wednesday-to-Tuesday wraparound weekly survey at an average of 3.12 percent.
"Even though the recent economic data has been disappointing, there is considerable optimism that this is only a soft patch, and not the start of a new downturn," said Keith Gumbinger, vice president of HSH.com. "There has been some discounting of the poor January employment report, and the Federal Reserve has expressed no new concerns about the economy's prospects for growth."
In her first appearance before Congress this week, new Federal Reserve Chair Janet Yellen discussed the economy and Federal Reserve policy, and it appears she is comfortable with both the present path for quantitative easing (QE) tapering and the market's reaction to these changes. These reassuring words and some certainty about the Fed's expected actions helped equity markets to rally, driving influential yields back upward. Both stock markets and yields have trended higher in recent days, after a January downturn.
"With Ms. Yellen expressing confidence that the recovery will continue and even accelerate over the coming year, it remains a fair bet that mortgage rates will move higher," adds Gumbinger. "However, it's also a fair bet that the path to get us there will be winding at times, so we remain in a "buy on the dips" pattern for mortgage borrowers, who should be prepared to act when these opportunities present themselves."
Average mortgage rates and points for conforming residential mortgages for the week ending February 11, according to HSH.com:
Conforming 30-year fixed-rate mortgage
-Average rate: 4.38 percent
-Average points: 0.15
Conforming 5/1-year adjustable-rate mortgage
-Average rate: 3.12 percent
-Average points: 0.08
Average mortgage rates and points for conforming residential mortgages for the previous week ending February 4 were, according to HSH.com:
Conforming 30-year fixed-rate mortgage
-Average Rate: 4.37 percent
-Average Points: 0.15
Conforming 5/1-year adjustable-rate mortgage
-Average Rate: 3.14 percent
-Average Points: 0.10
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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Press Contact
Alex Bryant
650-703-5214
pr(at)hsh(dot)com
Alex Bryant, HSH.com, http://www.hsh.com, +1 (650) 703-5214, [email protected]
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