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June 27th, 2012

Near-record-low mortgage rates expected all summer

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Expert resized-HSH SpecialAccording to HSH.com’s latest Weekly Mortgage Rates Radar, fixed mortgage rates experienced a slight upturn from the previous week, while 5/1 hybrid ARMs were unchanged.

The average rate for conforming 30-year fixed-rate mortgages rose by 3 basis points (0.03 percent) to 3.81 percent. Conforming 5/1 hybrid ARM rates remained unchanged from the previous week, closing the Wednesday-to-Tuesday wraparound weekly survey at an average of 2.83 percent.

Before anyone begins to worry, average rates for 30-year fixed-rate mortgages are only 3 basis points above record lows, and 5/1 ARM rates average just a single basis point above their historic low.

“Low mortgage rates are starting to have the desired effect,” said Keith Gumbinger, vice president of HSH.com. “Refinancing activity continues at a steady pace, home sales are showing signs of life and home prices appear to be stabilizing, perhaps even improving a bit. That’s all welcome news for the beleaguered housing market.”

Two-month forecast for mortgage rates

For those borrowers and market observers looking for a more long-range mortgage-rate forecast, HSH.com produces a Two-Month Forecast for mortgage rates. According to the latest forecast which is good through the end of August, mortgage rates should remain low and steady over the next nine weeks.

“The Federal Reserve extended Operation Twist and the mortgage bond purchasing program until the end of the year,” said Gumbinger. “While a lot can happen between now and then, we are expecting to find record low rates at times over the next couple of months, and should otherwise hold near records for much of the summer.”

Be sure to read our Two-Month Forecast in its entirety.

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One Response to “Near-record-low mortgage rates expected all summer”

  1. Jason Says: June 29th, 2012 at 1:01 pm

    Strangely enough, since new home starts are up I think this is a good deal, and I hope more new home buyers will take advantage of it, along with those buying pre-existing homes. We still need the banks to come along though and at least give more people honest opportunities for home ownership.

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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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