“Mortgage Rates Backing Off, A Little”by Tim Manni
Mortgage rates eased some more last week, and according to the latest issue of HSH’s Market Trends Newsletter, “there doesn’t seem to be an economic report [out this week] which might cause a measurable firming for rates.” At the moment, any pessimistic economic outlook should work to the advantage of potential homebuyers and refinancers:
Now that the holiday season is behind us, the resumption of more regular activity will again start to reveal how the market perceives prospects for growth and inflation. If the stock and bond markets movements [last] week were any indication, there has been some fading of optimism about growth and concerns about inflation.
Of course, that’s to the benefit of mortgage rates; potential homebuyers and wanna-be refinancers should pine for poor economic news (at least until their transactions have borne fruit).
The overall average for 30-year fixed-rate mortgages tracked by HSH.com’s FRMI shed eight basis points (0.08%) as the overall indicator of the costs of conforming, jumbo and expanded conforming mortgage loans closed [last] week at 5.46%. The FRMI’s 5/1 ARM counterpart eased by better than an eighth-percentage point, stopping its fall at an average 4.68% for the period. Conforming 30-year FRMs ticked back again, and jumbo 30-year mortgages rang in at a flat 6%.
For their part, mortgage rates managed a little additional slide [last] week, and have now recovered about one-third of their December-January increase. It’s fortunate that the lift in rates came during the week between Christmas and New Year, but that it remained in place through [two weeks ago] probably put some refinancing and purchase decisions on hold temporarily. As we think it increasingly unlikely rates will continue any significant decline, the dip in rates [over the last few weeks] should be an opportunity for those who waited.
Click here to continue reading “Mortgage Rates Backing Off, A Little.” 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.