Mortgage Rates Fell As Low As 4.83% Last Week

On Tuesday of last week, the 30-year Conforming interest rate was among the lowest we’ve seen in several decades, according to the latest issue of HSH’s Market Trends Newsletter. By Friday, the rate did rise to 5.06%, yet, that’s still an incredibly-low rate for anyone looking to purchase or refinance.

Dangers in Playing the Mortgage Rate Waiting Game

What’s behind the latest dip in mortgage rates, and how long will they last? For the answers to those questions and more, let’s consult “Rates Touch New Lows, Will Rise“:

“Mortgage rates have been easing a bit lately due to both softer demand for credit and, most recently, some flight-to-quality purchases of US Treasuries related to financing troubles at Dubai World, a state-backed corporation which asked to forego payments on its outstanding debts for at least six months. That action is simply more fallout from the global financial crisis, which is still causing troubles at banks around the world. These troubles first came to light [in November]. After considerable initial concern, it seems that Dubai World’s effect on global finance markets is contained for the most part, so some of that move of cash into a safer haven began to unwind as [last] week progressed.”

Some surprising economic news came in late last week, and if the again-influential yield on the 10-year Treasury is any indication, mortgage rates seem certain to rise in the days ahead. The 10-year Treasury climbed from last Tuesday’s low of 3.21% to an estimated 3.48% by Friday’s market close; mortgage rates haven’t yet fully reflected all of that move, but from last Tuesday’s low of 4.83%, the all-important 30-year Conforming interest rate had risen to 5.06% by week’s end.

“For [last] week, HSH.com’s FRMI, our overall average for mortgage rates (including conforming, jumbo and agency jumbo), downshifted by five basis points, closing the survey period at 5.24%. Both conforming and jumbo rates declined [last] week, with conforming 30-year FRMs slipping to a 4.91% weekly average. At the same time, the overall average for 5/1 Hybrid ARMs managed a five-basis point slip of its own, landing at 4.56% for the week. Some aggressively-priced 5/1 ARMs can now be found in the market with rates starting as low as the mid-3% range.”

Click here to continue reading “Rates Touch New Lows, Will Rise.” 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.