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October 28th, 2013

Mortgage rates declined substantially last week

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Mortgage Rate ConceptThe Fed’s decision not to taper is making more sense as we review the latest economic reports. As Keith Gumbinger explained in HSH.com’s latest Market Trends newsletter, the economic data from August and September that was released last week, which was delayed thanks to the government shutdown, produced a reaction from market observers of “We waited for this?”

Items like the September employment report (released three weeks late) fell well below expectations. Even economic reports from October and November will be influenced by the shutdown, Gumbinger wrote. “Some estimates suggest that the shutdown may have carved as much as a half-percentage point off of GDP growth, all told.” The next GDP report is expected on November 7.

Yet, despite “the government’s dysfunction” and the continued economic weakness, one thing stands out which can actually help revive the economy: Lower mortgage rates.

Mortgage rates declined

According to HSH.com’s weekly survey (Monday through Friday), mortgage rates fell somewhat substantially last week

  • 30 year: The overall average rate for a 30-year fixed-rate mortgage (conforming, non-conforming and jumbo) eased by 0.13 percent to 4.32 percent, its lowest value since the third week of June.
  • 15-year: The overall average rate for a 15-year fixed-rate mortgage (conforming, non-conforming and jumbo) fell by 0.09 percent from the week prior, slipping to 3.48 percent.
  • FHA: The FHA-backed 30-year fixed-rate mortgage cracked the 4 percent mark, falling 0.09 percent to 3.93 percent.
  • ARMs: Lastly, the overall 5/1 Hybrid ARM also fell by 0.09 percent, dropping to 3.06 percent for the week ending October 25.

Summer’s higher mortgage rates influenced home sales

Luckily for potential home buyers and homeowners looking to refinance, mortgage rates are again falling after a summer which saw mortgage rates on the rise.

Refinancing activity was crushed just a few months back thanks to higher rates, and we saw some of the same effect, although not to that degree, in home sales. New-home sales showed the most immediate reaction to the rising-summer rates, but for existing sales, as Gumbinger noted in the Market Trends, the impact only appears to be slight.

This week…

The larger-than-expected dip in mortgage rates last week might give way to firmer rates this week. However, at the moment, the movement of mortgage rates is once again “data dependent.” Look for mortgage rates to give back a couple of basis points this week.

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One Response to “Mortgage rates declined substantially last week”

  1. Mortgage Rates Reach the Lowest Point in Four Months! « Antioch TN Homes Says: February 6th, 2014 at 11:02 am

    [...] Mortgage rates declined substantially last week (hsh.com) Share this:Google+ Dionne HarrisLike this:Like Loading…‹ New Listing in Antioch!New Listing in Antioch, Let’s Go See It! ›Categories: Purchasing a HomeTags: Antioch community events, Antioch homes for sale, buying a home in antioch, Dionne Harris Consulting, EGAP Real Estate, Garage (residential), interest rates, Nashville homes for sale, real estate, Real estate broker [...]

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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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