Mortgage rates fall further on weak economic databy Tim Manni
Below is an excerpt from the latest Mortgage Rates Radar from HSH.com:
HSH.com releases its latest Weekly Mortgage Rates Radar showing a downturn in mortgage rates from the previous week. The Weekly Mortgage Rates radar reports the average rates and points offered by lenders for the two most popular types of mortgages, the conforming 30-year fixed-rate mortgage and the conforming 5/1 adjustable-rate mortgage (ARM). Average rates for both moved downward during the week ending July 03.
Rates on the most popular types of mortgages declined again, according to HSH.com’s Weekly Mortgage Rates Radar. The average rate for conforming 30-year fixed-rate mortgages fell by three basis points (0.03 percent) to 3.78 percent, trying a record low. Conforming 5/1 Hybrid ARM rates decreased by two basis points, closing the Wednesday-to-Tuesday wraparound weekly survey at new record average 2.81 percent.
“Mortgage rates continue to respond to a poor economic outlook,” said Keith Gumbinger, vice president of HSH.com, “and the latest reports have featured more of the same. Elevated unemployment claims, weak consumer sentiment and a factory sector which seems to have stalled are all contributing to the downward pressure on mortgage and other interest rates.”
Perhaps the most important report to watch this week will be the national employment report, out on Friday. The last several months have shown virtually no job growth and a stubborn unemployment rate which doesn’t indicate any immediate improvement on the horizon.
“Without stronger job growth, it will be hard to keep the expansion going, let alone move it to a self-sustaining level,” Gumbinger added. “The benefit of low financing costs to buy or refinance homes only goes so far in supporting the economy and provides only limited momentum to tide us over rough patches. We need more gainfully employed people to join the fray, but the challenges facing the economy seem too great to allow companies to hire at the moment.”