Mortgage Rates Fell to 2009 Lowby Tim Manni
Mortgage rates are on a roll. Rates fell last week to their lowest levels seen all year. According to the latest issue of HSH’s Market Trends Newsletter, “Mortgage Rates Downshift, Match Year’s Low,” the conforming 30-year fixed rate dipped below the 5% mark.
“Although one might have thought that everyone knew that a sluggish economic recovery is on tap, a reiteration of this by Federal Reserve Chairman Ben Bernanke [last] Monday seemed to push some investors out of equities and back into bonds, driving yields and mortgage rates downward.”
“HSH.com’s overall average for mortgage rates, as measured by our Fixed-Rate Mortgage Indicator FRMI, declined by seven basis points (0.07%) [last] week, with the average price of all loans — conforming, jumbo and agency jumbo combined — slipping to 5.28%. The overall average for 5/1 Hybrid ARMs eased by three basis points, finishing [last] week at 4.58%. Conforming 30-year fixed slipped below the 5% mark, the 5th time they’ve done so this year, and have now matched 2009 lows. This is occurring despite an improving economy, which usually brings somewhat firmer interest rates.”
“Slower holiday demand for mortgage credit could see interest rates move a little lower in the days and weeks just ahead, but even slight additional dips may bring in enough business to lenders as to keep rates fairly steady. As we’ve noted in the past, there no reason to run a sale when the store’s already full of customers.”
“[This] week’s a holiday-shortened one. Mortgage rates probably don’t do much of anything in the three-day period, and bond markets and HSH are closed on both Thursday and Friday.”
“Looking at the longer term? You’ll need to read our latest two-month forecast.”
Click here to continue reading “Mortgage Rates Downshift, Match Year’s Low.” 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.