Home Mortgage Rates Flare Higherby Tim Manni
According to the latest issue of HSH’s Market Trends Newsletter, “Home Mortgage Rates Flare Higher,” mortgage rates rose last week, while mortgage applications fell.
“Holiday-shortened weeks such as this [past] one have not been friendly to the market over the past year or so.”
“HSH’s Fixed-Rate Mortgage Indicator — inclusive of conforming, jumbo and ‘expanded conforming’ interest rates — rose by 23 basis points, landing at an average 5.89%. HSH’s FRMI has a long history, as well as a 5/1 Hybrid ARM counterpart, which featured a seven-basis point increase this week, and a survey-closing average of 5.64%.”
“Conforming 30-year FRMs — which, by some measures, dipped below the 5% mark last week — rose to an average 5.34%, while 30-year FRM jumbos tracked just 11 basis points higher.”
“As mortgage rates ticked higher over the past few days, mortgage application activity has backed off somewhat, according to the Mortgage Bankers Association of America. Part of the reason for the firming in interest rates may be due to some capacity constraints forming in the marketplace. If rising rates are an attractant for new business — and they obviously are — a lender may choose to increase its rates somewhat as a way to discourage new business that they not be prepared to handle.”
Click here to continue reading “Home Mortgage Rates Flare Higher.” HSH’s free weekly Market Trends Newsletter, an in-depth analysis of various financial markets of the week prior, is published every Monday. Email subscribers receive it in your inbox by Friday night, so sign up today! Also, be sure to check in with our Market Trends blog for all news relating to any weekly shift in mortgage rates.