Mortgage Rates Eased Last Weekby Tim Manni
Mortgage rates fell last week to levels unseen in months, but, according to the latest issue of HSH’s Market Trends Newsletter, “Easing Rates as Summer Wanes,” borrowers shouldn’t expect rates to fall all the way back to their spring lows.
“Mortgage rates slipped back a little bit this week, moving somewhat closer to the bottom of the range which has held since late May and early June.”
“Would-be borrowers hoping for mortgage rates to return to the 4% range of Spring should know that those rates were the result of lingering financial and economic panic, circumstances which seem to be fading into the rearview mirror. If the conditions which caused those rates is fading, so it the probability of any return there for rates. Regardless, even as mortgage rates remain at fantastic levels, underwriting criteria remains quite stiff by recent standards.”
“The overall average rate for 30-year fixed-rate mortgages reflected in HSH’s Fixed-Rate Mortgage Indicator (FRMI)moved down by 10 basis points (0.10%) this week, landing at an average 5.63%. It was the lowest such average since late May, just barely surpassing the 5.66% seen on July 10. Conforming 30-year FRMs shed 15 basis points and also closed the week at late May levels by a couple basis points, too, while FRMI’s 5/1 Hybrid ARM counterpart eased back to 4.91%. Thirty-year FHA-backed fixed rates, a product of growing importance in this tight financing market, rang in at an average 5.26% with an average 0.39 points.”
Click here to continue reading “Easing Rates as Summer Wanes.” 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.