We research, you save.
June 28th, 2010

Mortgage Rates Fall to Record Lows, Old News?



If you were following us last week you would have read that mortgage rates once again fell to record lows. How low? We’re talking the lowest levels in 54 years. On Thursday of last week, the 30-year Conforming fixed rate rang in at 4.69%, a figure last seen in 1956.

“There was a time when ultra-low mortgage rates would create a cascade of activity, 40-point headlines, and a bombardment of lender phones — a crush of volume that would overwhelm lender staffs,” according to the latest issue of HSH.com’s Market Trends Newsletter.

However, that increase in activity and those headlines seem to have come and gone from today’s market. When mortgage rates fall to new lows seemingly every week, you really can’t blame perspective buyers and refinancers, even news editors for not jumping at the news.

This week’s Market Trends refers to last week’s rates as “‘technical’ lows — really, just a few basis points down from already-record-low territory.”

The fact is that there just isn’t enough pent-up demand to produce much new activity. At best, the ‘window of refinancing opportunity’ has merely widened a little bit any may now include folks presently holding mortgages with rates in the 5.75% range or so.

Purchasers are of course interested in low rates, but affordable rates are only one consideration when deciding to buy a home.

Let’s take a look at rates across the board:

HSH’s overall gauge, our Fixed-Rate Mortgage Indicator (FRMI) includes rates for conforming, jumbo, and the GSE’s “high-limit” conforming products and so includes a broad swath of the mortgage-borrowing public. [Last] week, the FRMI fell by another four basis points, closing the first week of Summer at 5.07%. The ‘best’ alternative to the 30-year FRM for many folks, especially jumbo borrowers, is the hybrid 5/1 ARM, which finished the week at an attractive 4.12%.

Conforming 30-year fixed, the benchmark mortgage product, stands at 4.77% with 0.21 points on average. This suggests that borrowers should easily be able to find zero-point rates not higher than 4.875%, and possibly no-fee deals at 5% or thereabouts. Based upon available research, which provides useful but not direct comparisons, we reckon the conforming 30-year FRM to be at levels unseen since May 1956.

For big-balance borrowers, private-market jumbo 30-year FRMs are very close to record low levels, too, at an average 5.60%.

Find out what’s in store for this week: CLICK HERE to continue reading “Rates Like ‘56.”

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.

Share and Enjoy:
  • email
  • Print
  • RSS
  • Add to favorites
  • Yahoo! Bookmarks
  • Facebook
  • Twitter
  • Technorati
  • Digg
  • del.icio.us
  • Google Bookmarks
  • StumbleUpon
  • Yahoo! Buzz
  • Mixx
  • BlinkList
  • Live
  • Reddit

2 Responses to “Mortgage Rates Fall to Record Lows, Old News?”

  1. Tweets that mention Mortgage Rates Fall to Record Lows, Old News? | HSH Financial News Blog -- Topsy.com Says: June 29th, 2010 at 1:43 am

    [...] This post was mentioned on Twitter by HSH Associates, jacob osbourne. jacob osbourne said: Check this out Mortgage Rates Fall to Record Lows, Old News? | HSH Financial News …: If you were following us la… http://bit.ly/cJGtae [...]

  2. Visionary Realty News » A Week Full of Tax Credit Information for Buyers Says: July 6th, 2010 at 8:08 pm

    [...] stands now, this Wednesday (June 30) looks to be the official end of the homebuyer tax credit. “Mortgage Rates Fall to Record Lows, Old News?” If you were following us last week you would have read that mortgage rates once again fell to [...]

Leave a Comment

Receive Updates via Email

Delivered by FeedBurner

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.

Our bloggers:

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.

Connect With Us

  • rss feed icon
  • facebook icon
  • twitter icon

Compare Lowest Mortgage Rates