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May 24th, 2010

Mortgage Rates Fall Below 5%



With mortgage rates below the 5% mark, there has rarely been a better time for first-time and existing homebuyers to begin their search for a mortgage or refinance. Even though certain homebuying incentives — like the homebuyer tax credit — are absent from the marketplace, mortgage rates are again at 50-year lows, creating enhanced levels of affordability.

Don’t Play the Mortgage Rate Waiting Game

Nearly each time mortgage rates land at the lower end of 5% or in the upper-4% range, we warn mortgage shoppers not to play the mortgage rate waiting game.

With rates currently this low, it’s important to understand that rates can increase even faster than they have fallen. If you’re prepared to either buy or refinance, don’t balk at today’s low mortgage rates thinking that they may fall significantly lower. They are unlikely to do so.

How much will a rate increase influence my monthly payment? While we don’t foresee an extraordinary increase in mortgage rates anytime soon, a flare in rates can happen without warning. Even if they do bounce higher, it doesn’t mean that affordability is out of reach.

According to HSH’s Amortization Calculator, the difference in a monthly payment between a 5% and 5.5% interest rate on a $200,000 loan is $61.94. For the same loan amount, the monthly difference between a 5% and 6% interest rate is $125.46, figures low enough to be able to fit in many homebuyer budgets.

HSH in the News

With mortgage rates this low, it’s no surprise that HSH.com has grabbed a lot of press over the weekend and today — including a front page mention in today’s Wall Street Journal.

The HSH in the News section of this blog (in the upper-right hand corner of the page) is where we update our media mentions on a daily basis.

Question? Opinions? Leave us a comment and we’ll be sure to get back to you!

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5 Responses to “Mortgage Rates Fall Below 5%”

  1. Tweets that mention Mortgage Rates Fall Below 5% | HSH Financial News Blog -- Topsy.com Says: May 25th, 2010 at 2:28 am

    [...] This post was mentioned on Twitter by Baltimore HUD Homes, HSH Associates and Adam Roberts, Sean La Rue. Sean La Rue said: Mortgage Rates Fall Below 5%: The HSH in the News section of this blog (in the upper-right hand corner of the page… http://bit.ly/9BIaD0 [...]

  2. Samantha Taylor Says: May 25th, 2010 at 2:29 am


    My name is Samantha. I am a professional blogger who loves to write on financial topics. I’m writing to you because I am currently trying to take my author identity to the next level by supplying informative articles to personal finance bloggers. I don’t believe in writing promotional articles, instead I feel informative stuff are something users are most interested in reading.

    I would hereby like to request an opportunity to write a guest post on your site, ofcourse free of charge. You can send me your preferred topic, if any, and I would be happy to write an article on it. I can show you some of my past work that have attracted good number of visitors.

    Anyways, you are doing a great job on with your blog and I’d like to talk to you in person, so I’d be happy if you could answer either way!

    Samantha Taylor.

  3. Tim Manni Says: May 25th, 2010 at 8:38 am

    Hey Samantha,

    If you want to send over some of your clips, we would be more than happy to look them over to determine if you may be a good fit for blog.hsh.com.

    Thanks for reaching out,

  4. Steve Says: May 25th, 2010 at 11:05 am

    I second your warning not to play the mortgage rate waiting game. Trying to time the mortgage rate market is analogous to trying to time the stock market: it’s extremely difficult to do, and no one has ever done it successfully for any length of time.

    For the life of me, I can’t figure out why people who do not monitor interest rates for a living think that they can time their decision perfectly. Those of us in the business are frequently off in our estimations, and we play with this stuff all day long! I mean, if HSH Associates doesn’t know exactly where rates are headed and when and how far, who does? :-)

    Someone once said about the stock market something that has some relevance to the mortgage rate market (and interest markets in general): Bulls may win. Bears may win. Pigs never win.

  5. Tim Manni Says: May 25th, 2010 at 11:19 am


    Great hearing from you! Thanks for the kind words. I agree with you all the way. I love that (perhaps) famous quote: “Trying to time the bottom of the mortgage market is like trying to time the top of the stock market.”

    Thanks again for your comments, stay in touch,

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About the HSH Blog

HSH.com's daily blog focuses on the latest developments in the mortgage and housing markets. Our mission is to relate how changes in mortgage rates and housing policy, as well as the latest financial news, impacts consumers, homebuyers and industry insiders alike. Our 30-plus years of experience in the mortgage industry gives us an edge as we break down the latest changes in an ever-changing market.

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Tim Manni

Tim Manni is the Managing Editor of HSH.com and the author of their daily blog, which concentrates on the latest developments in the mortgage and housing markets.

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