The upward trend in mortgage rates continues this week. On Monday, we reported that rates finished the week ending Jan. 4 on the rise. The after effects of the “cliff” deal continue to pressure fixed interest rates higher.
According to HSH.com’s latest mortgage rates report, the two most popular types of mortgages moved in different directions the week ending Jan. 8.
Below is an excerpt from our latest Market Trends newsletter. Each week, Keith Gumbinger, vice president of HSH.com, discusses the economic factors that influenced mortgage rates during the week.
The first week of the new year brought perhaps half a deal on resolving the “fiscal cliff,” but many hard choices and fights are yet to come.
Mortgage shoppers have to be pretty happy about the way 2012 ended and how 2013 has begun.
Rates on the most popular types of mortgages declined slightly, 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 3.49 percent. Conforming 5/1 Hybrid ARM rates decreased by five basis points, closing the Wednesday-to-Tuesday wraparound weekly survey at an average of 2.68 percent.
Rates on the most popular types of mortgages eased, with 30-year fixed rates moving to new record lows, according to HSH.com’s Weekly Mortgage Rates Radar. The average rate for conforming 30-year fixed-rate mortgages fell by six basis points (0.06 percent) to 3.45 percent. Conforming 5/1 Hybrid ARM rates decreased by seven basis points, closing the Wednesday-to-Tuesday wraparound weekly survey at an average of 2.67 percent.
“The fiscal cliff creeps even closer, and there is still no deal in sight,” said Keith Gumbinger, vice president of HSH.com. “Add to that somewhat less encouraging economic news and mortgage rates have found some space to fall of late.”
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.
