Blog
April 4th, 2012

Mortgage rates grow turbulent, react to Fed minutes

by

 

3-Federal-ReserveRates on the most popular types of mortgages eased during the week ending April 3, according to HSH.com’s latest Weekly Mortgage Rate Radar.

The average rate for conforming 30-year fixed-rate mortgages fell by 6 basis points (0.06 percent) to 4.10 percent. Conforming 5/1 hybrid ARM rates decreased by 8 basis points, closing the Wednesday-to-Tuesday wraparound weekly survey at an average of 2.98 percent.

“The brief upward flare for mortgage rates faded a little this week,” said Keith Gumbinger, vice president of HSH.com. “The latest economic news indicates that the previous increase in rates was a bit larger than it needed to be.”

Although mortgage rates did slip some this past week, they may not fall back to the level of recent lows.

Fed comments create turbulence

“Minutes of the Federal Reserve’s last meeting were released on Tuesday, and it appears that the Fed will take a more wait-and-see approach before making any changes to its present policy stance, especially with regard to starting up any new bond-buying program,” said Gumbinger.

“Since its existing ‘Operation Twist’ program runs until June, there is still plenty of time before a decision needs to be made on further easing. Any number of issues might sway the Fed one way or the other before that time.”

Loan officer and former HSH.com contributor Dan Green explained yesterday on his blog that “mortgage rates rose sharply” after the Fed minutes were released, reactively negatively to the Fed’s comments and the seemingly flip-flop statements made regarding further market stimulus.

“Based on comments from Fed Chairman Ben Bernanke made last week,” wrote Green, “investors thought a new stimulus round was imminent; likely to follow even the slightest economic hiccup. Today, those expectations are reversed.”

Average rates for week ending April 3

Average mortgage rates and points for conforming residential mortgages for the 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

Average mortgage rates and points for conforming residential mortgages for the previous week ending March 27 were, according to HSH.com:

Conforming 30-year fixed-rate mortgage

  •     Average rate: 4.16 percent
  •     Average points: 0.23

Conforming 5/1-year adjustable-rate mortgage

  •     Average rate: 3.06 percent
  •     Average points: 0.19
Share and Enjoy:
  • email
  • Print
  • RSS
  • Add to favorites
  • Yahoo! Bookmarks
  • Facebook
  • Twitter
  • Technorati
  • Digg
  • del.icio.us
  • Google Bookmarks
  • StumbleUpon
  • Yahoo! Buzz
  • Mixx
  • BlinkList
  • Live
  • Reddit

One Response to “Mortgage rates grow turbulent, react to Fed minutes”

  1. GMAC Mortgage Says: April 9th, 2012 at 6:24 pm

    While the Feds are waiting to see, it seems to me they should all they can to help the real estate market.

Leave a Comment

Receive Updates via Email

Delivered by FeedBurner

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.

Connect With Us

  • rss feed icon
  • facebook icon
  • twitter icon

Compare Lowest Mortgage Rates

$