Mortgage Rates Fall During Short Weekby Tim Manni
According to the latest issue of HSH’s Market Trends Newsletter, “Short Week, Lower Rates,” the factors that once caused rates to rise sharply have eased off for the moment.
“A few weeks ago, mortgage rates flared higher, climbing from still-economic-emergency levels. The rise came amid what was interpreted to be signals of an improving economic outlook, the potential for inflation, pondering over what the Federal Reserve and Treasury would do and rampant government spending, among other factors.”
“Over the past couple of weeks, those fears and concerns have run straight into a fairly stark reality: The economy remains weak, if less so than earlier this year; the Federal Reserve and Treasury have provided no indication that the announced programs to support the economy will change in one way or the other and inflation remains largely a down-the-road concern.”
“As a result, mortgage interest rates have settled back in their typical slow, wary fashion from highs reached in mid-June.”
“The overall average for 30-year fixed-rate mortgages of all stripes — measured by HSH’s Fixed-Rate Mortgage Indicator — declined by nine basis points (.09%) this week, closing at 5.81%. The holiday-shorted week saw the average rate for the FRMI’s 5/1 Hybrid ARM counterpart also ease back by nine basis points, closing at 5.22%. Conforming 30-year FRMs declined by eleven basis points, stopping at their lowest average since the week ending June 5.”
Click here to continue reading “Short Week, Lower 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.”