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June 16th, 2009

Mortgage Rates Easing From June Peak

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Mortgage rates have eased back from last week’s high. According to HSH Associates, as of today at 2:45 p.m., the rate for a 30-year Conforming loan dropped to 5.55% with 0.33 points — down from 5.81% with 0.29 points last Thursday.

Daily overall rates are posted at HSH.com at the close of business each day.

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7 Responses to “Mortgage Rates Easing From June Peak”

  1. Late Refi Guy Says: June 16th, 2009 at 4:12 pm

    Will we see 4.625 again?

  2. Tim Manni Says: June 16th, 2009 at 4:30 pm

    Late Refi Guy,

    Very unlikely. Unless there’s a major economic catastrophe (a major US bank failure, a foreign economy goes down in flames, or the Fed buys up every mortgage-backed security there is), rates won’t likely retreat back that far.

    Curious: what’s your rate at? Remember, today’s rates are historically low, but if your mortgage rate is pretty close to the current rate, a refi may do you little good. Read over our older post “How a Refi Could End Up Costing You.”

    Keep me posted, thanks for commenting,
    Tim

  3. Late Refi Guy Says: June 17th, 2009 at 9:00 am

    I have a 5.625 and when the rates dipped to the point where the 1.0 point rule of thumb was attainable, I began working through a refinance.

    Just shy of receiving the clear to close, the rates spiked. The Good Faith Estimate from my mortgage broker was for a 4.625 (paying 1 point).

    Today, I see them slowly ticking back down toward 5.25 at around 1 point (5.4% APR). I don’t remain overly optimistic at reaching our GFE goals any longer.

    – To clarify my original question —

    I was wondering what the likelihood of attaining a 4.625 while paying a point or even slightly more might be.

    Does that sound attainable or am I dreaming and missed the boat?

    I’ve done the math and if I can get to the 4.625, I’ll realize an advantageous financial point. Worse than that, I’m thinking I might end up having to eat the appraisal fee and day dream of how the miracle of compounding interest could have paid off for me if I could have put my refinance savings to work….

    Thanks for any additional thoughts you might have,

    Late Refi Guy

  4. Should I Lock My Rate Says: June 17th, 2009 at 4:42 pm

    I am in the middle of a home purchase and got caught in this short spike. My rate was 5.5 and today I am at 5.75. I am contemplating holding off on locking my rate in for a few more days in the hopes the rates may retreat slightly more.

    My broker is concerned that Obama’s plan that he announced today may cause another slight spike rather than a retreat.

    What do you all think?

  5. Tim Manni Says: June 18th, 2009 at 9:26 am

    Late Refi Guy,

    This type of scenario comes up every time rates dip extremely low. A few questions, “Why did you not lock in the 4.625%
    interest rate? Was a rate lock-in not available to you, or were you hoping for even lower rates?”

    It seems that you had your financial goal set out, you knew the rate you needed. Too often borrowers step back and hope the rate will fall just a little lower. You can drive yourself nuts waiting around for rates to fall just a little more.

    As far as attaining 4.625% w/ 1 point, you’ll have to shop around and speak to lenders to see if a rate in that range is even being offered.

    Best of Luck,

    Tim

  6. Tim Manni Says: June 18th, 2009 at 9:33 am

    Should I lock My Rate,

    As you can see, I’ve just responded to “Late Refi Guy” with the same question. First you should do the math and determine the difference in your monthly payment between the two rates. If you can no doubt handle both then it won’t hurt to lock in now — the current rate is still historically low!

    Too many borrowers wait and wait to lock in on the lowest rate and many times you can miss the boat that way. Rates will likely trend upwards as the economy improves.

    Thanks for commenting,
    Tim Manni

  7. Late Refi Guy Says: June 18th, 2009 at 9:40 am

    The way I understand it, from my mortgage broker was that we just missed it from the clear to close and we weren’t quite able to lock it in.

    We approached with the 4.625 as the win, anything else would be gravy — so to speak.

    From my understanding through the broker the company he originally had began working through had slowly and conservatively raised their rates from the beginning of our process until the point in time when we got the clear to close. When we had the clear to close, and were about to pull the trigger, the company pulled their sheet several hours before their normal close time.

    At that point, they hadn’t shown the GFE goal again and my broker began shopping another company which was showing much lower rates, etc.

    With that company, the rates spiked just prior to the clear to close or rate-lock in time.

    I also don’t understand why a brokers can’t operate in a manner in which they go through the process with multiple lenders at one time — I understand that it is bad practice to open multiple offers and then not come through with them.

    Shouldn’t the competition amongst the lenders be what the system is all about?

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About the HSH Blog

HSH.com's daily blog focuses on the latest developments in the mortgage and housing markets. Our mission is to relate how changes in mortgage rates and housing policy, as well as the latest financial news, impacts consumers, homebuyers and industry insiders alike. Our 30-plus years of experience in the mortgage industry gives us an edge as we break down the latest changes in an ever-changing market.

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Tim Manni

Tim Manni is the Managing Editor of HSH.com and the author of their daily blog, which concentrates on the latest developments in the mortgage and housing markets.

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