Mortgage Rates Creep Upwardsby Tim Manni
For the first time in a month, the Conforming 30-year fixed rate made its way above the 5% mark, according to the latest issue of HSH’s Market Trends Newsletter, “Mortgage Rates Bump Up.”
“Year-end market machinations, mix-and-match economic news, and holidays in full swing helped mortgage rates to move higher [last] week. Fortunately, relatively few borrowers are actually affected, since those aforementioned holidays, frantic shopping and last-minute travel plans provide plenty of distraction, leaving little time to consider a home purchase or refinance.”
“The eight-basis point move in the average rates tracked by HSH.com’s FRMI left the overall measure of conforming, jumbo and expanded conforming loans at 5.37%. The FRMI’s 5/1 Hybrid ARM companion nudged four basis points higher, finishing the survey week at 4.65%. Conforming 30-year fixed rates ticked back over the 5% mark, the first time that level has been breached in a month.”
“Mortgage rates have bumped a little higher and are now perhaps an eighth percentage point off their recent lows. While this shouldn’t be enough to deter any plans to purchase a home, it does take a little of the shine off the value of refinancing for some. [This] week has a three-day workweek on tap; since the 10-year Treasury yield settled as the week progressed underlying credit markets seem to like the levels they are at now. This being the case, we don’t expect to see much by way of movement [this] week for rates but could shave a couple basis points of [last] week’s averages.”
Wondering what mortgage rates will look like in the months ahead? Be sure to read our “Two Month Forecast for Mortgage Rates.”
Click here to continue reading “Mortgage Rates Bump Up.” HSH’s free Market Trends Newsletter, an in-depth analysis of various financial markets from the week prior, is published every Monday. Email subscribers receive it in their inbox 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.