“Rates, Economic Signals Mixed”by Tim Manni
According to the latest issue of HSH’s Market Trends Newsletter, “Rates, Economic Signals Mixed,” while an economic recovery has yet to be in our grasp, “we do seem to be trending along the bottom of the economic trough.”
“Low mortgage rates continue to promote homebuying and especially refinancing activity. This week, the overall average for long-term mortgage money as referenced by HSH’s Fixed-Rate Mortgage Indicator decreased by nine basis points (.09%) to finish the week at 5.44%. The FRMI’s 5/1 Hybrid ARM counterpart also trended down, landing at an average 5.19% for the period.”
“Low mortgage rates may be at the heart of the improving outlook.”
“Borrowers seeking jumbo mortgages in some markets are “lucky” enough to have access to agency-backed, so-called “high limit” conforming loans. Those loans are available in a number of markets around the country, but limits as high as $729,750 in some high-cost housing markets, and presently feature interest rates about a third percent higher than traditional conforming prices. This week, those fixed-rate “expanded conforming” loans rolled out lender doors at an average 5.24%.”
“With lower rates in place, we’ll admit to a little disappointment that the Mortgage Bankers’ Applications index eased back for both purchases and refinances last during the week ending April 10, but the Good Friday and Easter holidays may have impacted the otherwise rising trend. With both purchases and refinance applications falling by nearly identical percentages, this is likely the case.”
Click here to continue reading “Rates, Economic Signals Mixed.” 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.