“No ‘Stress’ on Mortgage Rates”by Tim Manni
According to the latest issue of HSH’s Market Trends Newsletter, “No ‘Stress’ on Mortgage Rates,” as the economy slowly pieces together the components of a recovery, mortgage rates remain relatively stable at their current historic low.
“Everyone keeps scanning the horizon, hoping to see the good ship Economic Recovery that’s surely out there somewhere. There’s still no indication of just when our ship will come in, but some market watchers think they’re seeing, just maybe, the merest glimpse of that elusive vessel.”
“Home mortgage rates offer such a glimpse. We’d remind you that despite their ups and downs, it’s important to remember that they’re definitely in the “historic low” range. For example, the 30-year FRM, as measured by HSH’s Fixed-Rate Mortgage Indicator, settled at 5.48%, up a scant five basis points (0.05%). That all-inclusive figure averages the prices of conforming, jumbo and expanded conforming products. The 30-year conforming FRM for the week averaged 5.04%, meaning that mortgage shoppers can find some very attractive rates in their area. (Check out these graphs for a dramatic reminder.)”
“We hate to sound like a skipping CD, but we don’t see much reason for rates to move just yet. To be sure, next week brings us a couple of potentially market-moving indicators including import/export prices, Retail Sales, and the PPI and the CPI, but it’s not likely they’ll surprise us.”
“Maybe it’s just us, but there does seem to be a bit more optimism in the news this week. Here’s hoping it spreads.”
“What might happen to markets and rates over the next couple of months? Read our latest two-month forecast to find out.”
“Click here to continue reading “No ‘Stress’ on Mortgage Rates.” 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.”