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February 22nd, 2012

Rates Down Slightly but Expected to Trend Higher

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Mortgage and down payment
Below is the latest “Weekly Mortgage Rate Radar” release from HSH.com, a Wednesday-to-Tuesday wraparound weekly survey of the two most popular types of mortgages. The significance of this release is that it’s published one full day prior to Freddie Mac’s weekly survey:

Rates on the most popular types of mortgages eased slightly, according to HSH.com’s Weekly Mortgage Rate Radar. The average rate for conforming 30-year fixed-rate mortgages fell by 3 basis points (0.03 percent) to 4.00 percent. Conforming 5/1 hybrid ARM rates decreased by just 1 basis point, closing the Wednesday-to-Tuesday wraparound weekly survey at an average of 2.94 percent.

“Rates for the most popular types of mortgages were down slightly over the past five business days, but a warming economy and stronger stock market will push them higher as the week progresses,” said Keith Gumbinger, vice president of HSH.com.

Gumbinger noted that underlying interest rates which influence mortgages have been on the rise recently, a trend that will have at least some effect on mortgage rates before long.

“If the economy continues to show stronger signs, at least slightly higher rates are inevitable,” commented Gumbinger. “As we noted in our new Two-Month Forecast, in such an environment, we expect that mortgage rates won’t be regularly setting new record lows. However, to say that rates will remain favorable is an understatement.”

Average mortgage rates and points for conforming residential mortgages for the week ending February 21 were, according to HSH.com:

Conforming 30-year fixed-rate mortgage

  • Average rate: 4.00 percent
  • Average points: 0.30

Conforming 5/1-year adjustable-rate mortgage

  • Average rate: 2.94 percent
  • Average points: 0.24

Average mortgage rates and points for conforming residential mortgages for the previous week ending February 14 were, according to HSH.com:

Conforming 30-year fixed-rate mortgage

  • Average rate: 4.03 percent
  • Average points: 0.27

Conforming 5/1-year adjustable-rate mortgage

  • Average rate: 2.95 percent
  • Average points: 0.23

Methodology

The Weekly Mortgage Rate Radar reports the average rates and points offered on conforming 30-year fixed-rate mortgages and conforming 5/1 ARMs. The weekly mortgage rate survey covers a large sample of mortgage lenders and is conducted over a Wednesday-to-Tuesday cycle, with data released every Wednesday. HSH.com’s survey helps consumers find the best rates on home loans in changing market conditions. Unlike mortgage rate surveys that report average rates only, the Weekly Mortgage Rate Radar’s inclusion of both average rates and average points provides a more accurate view of mortgage terms currently offered by lenders.

Every week, HSH.com conducts a survey of mortgage rate data for a wide range of consumer mortgage products including ARMs, FHA-backed and jumbo mortgages, as well as home equity loans and lines of credit from hundreds of direct lenders in the U.S. For information on additional loan products, visit HSH.com.

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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.

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.

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