“Rates Still Easing; New Record Low for Conforming”
by Tim Manni
For any potential home buyers out there deciding whether or not to pursue a home loan, this may be your sign. According to the latest issue of HSH’s Market Trends Newsletter, “Rates Still Easing; New Record Low for Conforming,” while some economic news improved last week, Conforming loan rates fell to a new record low.
“Perhaps the week’s decline in mortgage rates and the improvement in stocks was a coincidence, but it was the first week in a while without any major new government initiative to roil the markets.”
“Overall, fixed-rate mortgages eased back by seven basis points (.07%), closing the first survey week of April at 5.47%, the lowest average rate for HSH’s Fixed-Rate Mortgage Indicator since late June 2003. For its part, the FRMI’s a 5/1 Hybrid counterpart shed six basis points to finish the survey week at 5.24%.”
“Conforming 30-year FRM tripped back by four basis points to their latest record-low average, just below 5%. Jumbo 30-year FRMs continued to decline; the week’s 6.44% puts us back at rates last seen two years ago this week.”
“Since the turn of the decade, some 480 weeks have elapsed. Those contending that jumbo rates are “too high” would do well to learn that only 166 of those 480 weeks have featured an average interest rate below this week’s value — and that the remaining 314 have not only been above (but often well above) today’s figure. As a reference point, we are only about 89 basis points from the decade’s low average for Jumbos, but 253 below the high.”
Click here to continue reading “Rates Still Easing; New Record Low for Conforming.” 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.
