Mortgage Rates Mostly Unchangedby Tim Manni
According to the latest issue of HSH’s Market Trends Newsletter, Mortgage Rates Mostly Unchanged, “Even with headlines touting mortgage rates at historically low levels, regular observers know that there was little change in mortgage rates this week. Conforming mortgage rates were said to have fallen below an average of 5%, at least according to Freddie Mac and the MBAA. Of course, that average has been hovering near the 5% mark in recent weeks, and whenever the average is near a “psychologically important” level it is always possible to break that level simply by paying more points or fees up front. Freddie’s average rate assumes that the borrower is paying 0.7 points; the MBAA report sported an interest rate which would see the borrower paying 1.2 points. The higher the points and fees charged, the lower the interest rate.”
“Our own daily and weekly figures didn’t break the 5% mark. We were close, though, and any borrower wishing to pony up more money up front could have easily obtained a rate below 5%.”
“For the week, all together, we had an average of 5.11% + 0.28 points all told… and a final weekly “zero points” average of 5.17%. If we gathered prices at Freddie’s 0.7-point level we certainly also would have been below 5% this week, and well below with the MBAA’s 1.2-point statistic. The differing methodology produces slightly different results, and regardless of any “psychological” effect, there is scant difference between the interest rates of the 5.01% Freddie reported last week and the 4.96% figure this week.”
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