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April 11th, 2012

Mortgage rates decline from week prior

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Mortgage Rate ConceptBelow is the latest Mortgage Rate Radar release from HSH.com—a Wednesday-to-Tuesday wraparound weekly survey of the two most-popular types of mortgages. This Tuesday evening release precedes that of the MBA and Freddie Mac.

Rates on the most popular types of mortgages moved downward on worse-than-expected employment data, according to HSH.com’s Weekly Mortgage Rate Radar. The average rate for conforming 30-year fixed-rate mortgages fell by 4 basis points (0.04 percent) to 4.06 percent. Conforming 5/1 hybrid ARM rates decreased by 3 basis points, closing the Wednesday-to-Tuesday wraparound weekly survey at an average of 2.95 percent.

“The U.S. Labor Department’s employment report for March showed job growth at about half of expected levels,” said Keith Gumbinger, vice president of HSH.com. “By the end of last week, the most recent economic news had begun to suggest a flattening of growth, and mortgage rates started to back down from recent highs. The softness in hiring during March underscored those weak reports and served to push mortgage rates back toward record lows again.”

Average 30-year rates for fixed-rate mortgages rose to as high as 4.16 percent just two weeks ago.

Will the decline continue? Probably not, says Gumbinger. “Rates have settled back after a blip upward. For them to continue to decline, we will need more signs that the economy is cooling and signals that the Federal Reserve will be taking new steps to support it. Although possible, that seems unlikely at this point in time.”

Average mortgage rates and points for conforming residential mortgages for the week ending April 10 were, according to HSH.com:

Conforming 30-year fixed-rate mortgage

  • Average rate: 4.06 percent
  • Average points: 0.28

Conforming 5/1-year adjustable-rate mortgage

  • Average rate: 2.95 percent
  • Average points: 0.23

Average mortgage rates and points for conforming residential mortgages for the previous week ending April 3 were, according to HSH.com:

Conforming 30-year fixed-rate mortgage

  • Average rate: 4.10 percent
  • Average points: 0.25

Conforming 5/1-year adjustable-rate mortgage

  • Average rate: 2.98 percent
  • Average points: 0.21

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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