Just as we predicted in our last Market Trends Newsletter, improving economic conditions brought upward pressure to mortgage rates last week. According to the latest issue of HSH’s Market Trends Newsletter, “Firmer Economy, Firmer Rates,” even though would-be refinancers haven’t welcomed the higher rates, the upward pressure may actually help the economy.

“Investor money formerly stuffed into the safe haven of Treasury bonds is beginning to filter out into other areas of the economy, and the sooner that normalization takes place, the quicker the economy will experience actual recovery.”

Read the rest of this entry »

Hoards of would-be refinancers are probably kicking themselves, thinking they blew their chance at capturing a rock-bottom rate — not necessarily. Rates for 30-year fixed loans have leapt from 50-year lows to just under 5.45% in one week. Despite the significant increase, fixed rates still remain in a range considered significantly affordable by most mortgage experts.

We want to know how the sudden rate increase has affected you.

Read the rest of this entry »

According to the latest issue of HSH’s Market Trends Newsletter, “No ‘Stress’ on Mortgage Rates,” as the economy slowly pieces together the components of a recovery, mortgage rates remain relatively stable at their current historic low.

“Everyone keeps scanning the horizon, hoping to see the good ship Economic Recovery that’s surely out there somewhere. There’s still no indication of just when our ship will come in, but some market watchers think they’re seeing, just maybe, the merest glimpse of that elusive vessel.”

Read the rest of this entry »

Largely in response to the Fed’s promise of injecting more money into the economy by buying over $1 trillion worth of Fannie and Freddie mortgage backed securities (MBS), the 30-year fixed rate mortgage fell to below 5% today:

By the close of business on March 19, the 30-year conforming FRM fell to 4.94%, according to Keith T. Gumbinger, a VP at HSHAssociates.com. That’s a fall of nearly a quarter percent since Wednesday.

Read the rest of this entry »

According to the latest issue of HSH’s Market Trends Newsletter, Mortgage Rates Mostly Unchanged, “Even with headlines touting mortgage rates at historically low levels, regular observers know that there was little change in mortgage rates this week. Conforming mortgage rates were said to have fallen below an average of 5%, at least according to Freddie Mac and the MBAA. Of course, that average has been hovering near the 5% mark in recent weeks, and whenever the average is near a “psychologically important” level it is always possible to break that level simply by paying more points or fees up front. Freddie’s average rate assumes that the borrower is paying 0.7 points; the MBAA report sported an interest rate which would see the borrower paying 1.2 points. The higher the points and fees charged, the lower the interest rate.”

“Our own daily and weekly figures didn’t break the 5% mark. We were close, though, and any borrower wishing to pony up more money up front could have easily obtained a rate below 5%.”

Read the rest of this entry »