Mortgage Rates Plummet — HSH in the Newsby Tim Manni
Last week when mortgage rates took a nose dive, financial news outlets across the country contacted HSH Associates for commentary and rate quotes concerning the steepest rate drop since February. In the past week, HSH has been quoted 12 times by major news sources — six alone on November 26 — the day after the conforming 30-year fixed rate dropped 29 basis points.
Be sure to click on and read the “HSH in the News” page of our blog, located in the top right-hand corner of the home page. The page is filled with links and clips of financial news articles from a variety of trusted sources.
From the New York Times:
“This brings a major buyer into the marketplace with very deep pockets to snap up available securities, and a sizable number of them at that,” said Keith T. Gumbinger, vice president of the financial publisher HSH Associates in Pompton Plains, N.J. “With new demand for both debt- and mortgage-backed securities coming into the market, the dollar value of those investments can rise, helping to lower their yields. Mortgage rates track those yields, and decline right along with them.”
The 30-year fixed-rate mortgage fell about 29 basis points on Tuesday, from 6.06% to 5.77%, said Keith T. Gumbinger, vice president of HSH Associates, a publisher of mortgage and consumer loan information.
“That was the largest one-day drop we saw since Sept. 8,” Gumbinger said. That last drop came just after it was announced that Freddie and Fannie would be taken over by the government.
“The expectation is that they will continue to improve,” he said of mortgage rates.