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February 8th, 2012

Record low mortgage rates roll on as ‘robo’ settlement nears



falling ratesAs of last Friday, HSH.com reported that mortgage rates had once again dipped back to new record lows. The streak has continued into this week.

According to HSH.com’s latest Weekly Mortgage Rate Radar, rates on two of the most popular types of mortgages eased back even more, breaking new record low territory.

The average rate for conforming 30-year fixed-rate mortgages fell by 3 basis points (0.03 percent) to 4.00 percent, while conforming 5/1 hybrid ARM rates also decreased by 3 basis points, closing the Wednesday-to-Tuesday wraparound weekly survey at an average of 2.96 percent.

“While various mortgage relief proposals are still being formed, including the plan announced by the president last week, the best mortgage relief for many borrowers is right in front of us in the form of continual near- or actual record-low mortgage rates,” said Keith Gumbinger, vice president of HSH.com.

Average mortgage rates and points for conforming residential mortgages for the week ending February 7 were, according to HSH.com:

Conforming 30-year fixed-rate mortgage

  • Average rate: 4.00 percent
  • Average points: 0.25

Conforming 5/1-year adjustable-rate mortgage

  • Average rate: 2.96 percent
  • Average points: 0.20

How will the robo-signing settlement affect you?

Could the current interest rate environment and the potential national settlement of the alleged robo-signing scandal help more borrowers get loan modifications or refinances?

“If the attorneys general do get a nationwide settlement for poor foreclosure practices, more homeowners may get a chance to snag new mortgages at rates that provide real and lasting relief,” said Gumbinger. Some 40 states have signed onto the agreement, but there are still a few notable holdouts, including California, Florida and New York.

“Ultimately, any settlement will be paid for by all consumers, but it is expected that some homeowners in difficult straits will be offered better deals than the ones they have,” said Gumbinger.

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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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