With another week in the books, it is even more evident how closely the movement of mortgage rates is tied to our nation’s economy. A few months back, it seemed as though by now inflation would be a major indicator that would influence the direction of mortgage rates.
Update1: At the close of business today, the 30-year Conforming fixed rate rang in at 4.69%.
Original post: At the close of business yesterday, the 30-year Conforming fixed rate rang in at 4.75%, according to HSH.com. That’s a 54-year low for mortgage rates (from what we can reckon), the lowest we’ve ever recorded.
However, mortgage-rate records are very spotty when you go back five-plus decades, and comparing rates from today with rates from 1956 isn’t exactly fair since the mortgage market was quite different back then.
Some economists have said that the “new normal” won’t be like anything that we were used to before the financial crisis. However, that may not be the case for all economic indicators. Things got a little more “normal” last week when the Dow Jones Industrial Average hit the 10,000 mark and when Treasury yields began to once again influence the direction of conforming rates.
According to the latest issue of HSH Market Trends Newsletter, “Dow Ten-thou, and Rates Nudge Higher“: Read the rest of this entry »
Back in June when mortgage rates began to increase from their spring-time lows, we wrote a post with the exact same title as this. Despite the fact that we’re republishing it some four months later, the context still applies (emphasis added):
When mortgage rates sank to the lower end of 5% [in May], hordes of borrowers began the refinance process, eager to cash in on a lower rate. Even when the rate was close to 5%, some borrowers waited for rates to drop even lower. Now that the recent spike in mortgage rates has ended the refi dream for many, some borrowers are blaming themselves that they didn’t lock in fast enough.
According to the latest issue of HSH’s Market Trend’s Newsletter, “Conforming Rates Down; Jumbos Crack 6% Mark,” the average rate for a 30-year jumbo fixed-rate mortgage dropped to 5.96% — the first time the rate has fallen below 6% since September 9, 2005. Not to be outdone, on Wednesday the average conforming 30-year fixed-rate mortgage with no points came in at an average 5.09%, among the lowest average rates seen in 2009.
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.
