HSH.com Weekly Mortgage Rate Radar: Rates Firm Slightly As Economy Warms

HSH.com releases its latest Weekly Mortgage Rate Radar showing a mild increase in mortgage rates from the previous week. The Weekly Mortgage Rate 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 for both types of loans rose slightly during the week ending January 24.

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The economic news over the past few weeks has been fairly solid. Investors have felt more comfortable moving money away from the safe haven of bonds into riskier investments. That action nudges mortgage rates and other interest rates a little higher.

(PRWEB) January 25, 2012

Rates on the most popular types of mortgages rose above record lows, according to HSH.com's Weekly Mortgage Rate Radar. The average rate for conforming 30-year fixed-rate mortgages rose by 6 basis points (0.06 percent) to 4.08 percent. Conforming 5/1 hybrid ARM rates increased by 3 basis points, closing the Wednesday-to-Tuesday wraparound weekly survey at an average of 3.00 percent.

“The economic news over the past few weeks has been fairly solid,” said Keith Gumbinger, vice president of HSH.com. “Investors have felt more comfortable moving money away from the safe haven of bonds into riskier investments. That action nudges mortgage rates and other interest rates a little higher.”

Technical factors in the mortgage market may have also contributed to the recent rise. “Fees that lenders pay for loans being guaranteed by Fannie Mae or Freddie Mac are increasing over the next few months, and those costs are ultimately passed along to consumers in the form of higher rates,” noted Gumbinger. However, when fully priced into the market, the bump in rates as a result of these fees is expected to be slight, perhaps an eighth of a percentage point or less.

Average mortgage rates and points for conforming residential mortgages for the week ending January 24 were, according to HSH.com:

Conforming 30-year fixed-rate mortgage

  •     Average rate: 4.08 percent
  •     Average points: 0.25

Conforming 5/1-year adjustable-rate mortgage

  •     Average rate: 3.00 percent
  •     Average points: 0.22

Average mortgage rates and points for conforming residential mortgages for the previous week ending January 17 were, according to HSH.com:

Conforming 30-year fixed-rate mortgage

  •     Average rate: 4.02 percent
  •     Average points: 0.30

Conforming 5/1-year adjustable-rate mortgage

  •     Average rate: 2.97 percent
  •     Average points: 0.25

Methodology
The Weekly Mortgage Rate 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 Rate 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 Pompton Plains, 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 meet their needs. The company is a leader in visitor-friendly 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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