Homebuyers Give Thanks for Low Mortgage Ratesby Tim Manni
Active as well as potential homebuyers had one more thing to be thankful for during the holiday-shortened week: low mortgage rates. According to the latest issue of HSH’s Market Trends Newsletter, “Thanks, for Low Mortgage Rates,” the average price of all loans — conforming, jumbo and agency jumbo combined — rose by only 0.01%.
“A holiday-shortened week was nonetheless packed with economic data. While there is a nascent recovery forming, it seems likely to be a slow, grinding affair.”
“Full recovery — one which involves wider swaths of the economy — may not occur until next year some time. In the interim, prominent government support for the nation’s housing markets does seem to be having some beneficial effects, and low mortgage rates are chief among those supports.”
“[Last] week, HSH.com’s overall average for mortgage rates, as measured by our Fixed-Rate Mortgage Indicator, or FRMI, rose by a lone basis point (0.01%) [last] week, so the average price of all loans — conforming, jumbo and agency jumbo combined — ended the short week at 5.29%. The overall average for 5/1 Hybrid ARMs rose by three BP, and the alternate to the traditional FRM finished the period at 4.61%.”
“Finally, If you have a job and still have equity in your home, you may be able to take advantage of some of the most attractive refinancing conditions ever. If you want to buy a home, affordability is at levels you may not have experienced in your (adult) lifetime. Consider taking advantage of these opportunities as they won’t last forever.”
“Mortgage rates will wander aimlessly [this] week and are just as likely to rise a few basis points as to fall by a like amount.”
Click here to continue reading “Thanks, for Low 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.