HSH.com Weekly Mortgage Rates Radar: Despite Small Rise, Mortgage Rates Poised to Ease
Foster City, Calif. (PRWEB) July 03, 2013 -- Rates on the most popular types of mortgages increased slightly, according to HSH.com's Weekly Mortgage Rates Radar. The average rate for conforming 30-year fixed-rate mortgages rose by five basis points (0.05 percent) to 4.45 percent. Conforming 5/1 Hybrid ARM rates increased by seven basis points, closing the Wednesday-to-Tuesday wraparound weekly survey at an average of 3.30 percent.
"The big jump in mortgage rates late last week has settled somewhat," said Keith Gumbinger, vice president of HSH.com. "From the data we gather each day, indications are that rates have started to slide backward a little bit, relative to what we observed last week."
Mortgage rates rose to nearly two-year highs last week, leaping on concerns that the Fed would begin to unwind its program of purchasing Mortgage-Backed Securities (MBS) and Treasury bonds sooner than markets anticipated. In response to this, some Federal Reserve governors and regional bank presidents have made statements that the markets are misinterpreting the Fed's intentions. This has calmed markets, allowing mortgage rate increases to flatten out, bringing the potential for declines before the week is out.
"We've always known that the Fed will end QE3 at some point," adds Gumbinger. "What we don't know, and even the Fed may not yet know, is when that process will begin and how quickly it will come to a conclusion. This will depend upon how well the economy performs, especially job growth and inflation. Whether mortgage rates can ease or will continue to move higher depends on these factors, starting with the June employment report due out Friday."
Average mortgage rates and points for conforming residential mortgages for the week ending July 2, according to HSH.com:
Conforming 30-year fixed-rate mortgage
• Average rate: 4.45 percent
• Average points: 0.18
Conforming 5/1-year adjustable-rate mortgage
• Average rate: 3.30 percent
• Average points: 0.19
Average mortgage rates and points for conforming residential mortgages for the previous week ending June 25 were, according to HSH.com:
Conforming 30-year fixed-rate mortgage
• Average Rate: 4.40 percent
• Average Points: 0.19
Conforming 5/1-year adjustable-rate mortgage
• Average Rate: 3.23 percent
• Average Points: 0.22
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
Andrew Heilman, HSH.com, http://www.hsh.com/, 775-784-3842, [email protected]
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