Record low mortgage rates roll on as ‘robo’ settlement nearsby Tim Manni
As 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.