January 3rd, 2011

Mortgage rates rise at the end of 2010



YearInRates2010 Despite the shortened holiday week, mortgage rates managed a slight tick upwards last week as 2010 came to a close:’s overall mortgage tracker — our weekly Fixed-Rate Mortgage Indicator (FRMI) — found that the overall average rate for 30-year fixed-rate mortgages rose by four basis points, (.04%) to end’s national survey at 5.19%. FHA-backed offers, so crucial to first-time homebuyers and low-equity refinancers, increased by the same amount to finish the last week of 2010 at 4.82%, while the overall average rate for 5/1 Hybrid ARMs remained below the 4% threshold with an average initial five-year rate of 3.95%’s FRMI and other public data series includes rates for conforming, jumbo, and most recently the GSE’s “high-limit” conforming products and so cover much of the mortgage-borrowing public.

Mortgage rates in 2010

The graph below shows both conforming and jumbo rates throughout 2010. Last year was a historical one in terms of mortgage rates. We witnessed “multi-generational lows”, and the end of 2010 saw a quick reversal in the downward trend that seemed to last most of the year. As we’ve warned many times before, mortgage rates always rise more quickly than they fall:

YearInRates2010Despite the recent upward trend in mortgage rates, rates in 2011 are starting out much lower than they did in 2010. Lastly, even though rates are more unfavorable now than they were a few months back, historically, mortgage rates remain extremely affordable.

CLICK HERE to continue reading the latest issue of our Market Trends Newsletter, “Mortgage rates finish year with uptick.”’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.

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2 Responses to “Mortgage rates rise at the end of 2010”

  1. Tweets that mention Mortgage rates rise at the end of 2010 | HSH Financial News Blog -- Says: January 3rd, 2011 at 7:10 pm

    [...] This post was mentioned on Twitter by jacob osbourne. jacob osbourne said: Check this out Mortgage rates rise at the end of 2010 | HSH Financial News Blog: Despite the shortened holiday w… [...]

  2. number1homeloan (Anthony Manzo) Says: January 5th, 2011 at 3:53 pm

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About the HSH Blog'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 and the author of their daily blog, which concentrates on the latest developments in the mortgage and housing markets.

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