Mortgage Rates Fall to New Lowby Tim Manni
It seems as though we’ve been using some variation of the same title for our Market Trends recap just about every Monday. As a matter of fact, the title of our posts on June 1 was “Mortgage Rates Set New Record Low.” According to the latest issue of HSH.com’s Market Trends Newsletter, mortgage rates fell even further last week, claiming a new record low.
All that being said, the news of last week’s voyage into new record-low territory is being overshadowed by the fact that not many new borrowers or refinancers are able to take advantage of these historical rates:
Mortgage rates moved to new lows [last] week, but tight underwriting requirements, underwater homeowners, unemployment and no tax-credit-fueled demand mean that a dwindling pool of would-be borrowers can or will take advantage of these historic levels of rates.
This demand slump seems to be forming at the beginning of what is typically already a slow-activity time of year, with the summer doldrums fast approaching.
Let’s take a look at last week’s numbers:
HSH’s market-spanning Fixed-Rate Mortgage Indicator (FRMI) slipped by six basis points (.06%) to close HSH’s weekly survey at 5.15%. Calculated by including rates for conforming, jumbo, and the GSE’s “high-limit” conforming products, the FRMI includes covers a broad swath or the mortgage-borrowing public. The FRMI’s companion — the overall average for a hybrid 5/1 ARM — came in at an average interest rate of 4.23% for the week.
Conforming 30-year FRMs finished [last] week at an average 4.87% + 0.22 points, a seven basis point decline from [the week prior].
Find out what’s in store for this week: CLICK HERE to continue reading “Record Low Rates! Waning Effect?”
Ready to buy? Ready to refi? Begin your search for record-setting mortgage rates today.
HSH.com’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.