According to the latest issue of HSH’s Market Trends Newsletter, Mortgage Rates Remain Firm, “After touching near-50-year lows for certain products over the past few weeks, mortgage rates have largely settled in a firmer pattern. Lousy economic news continues to fill screens and news pages, but it’s not doing much to tug rates lower.”

“In fact, certain influential interest rates are moving in the other direction. For fixed mortgage rates, that’s notably the 10-year Treasury Security.”

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According to the latest issue of HSH’s Market Trends Newsletter, “Home Mortgage Rates Flare Higher,” mortgage rates rose last week, while mortgage applications fell.

“Holiday-shortened weeks such as this [past] one have not been friendly to the market over the past year or so.”

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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%.”

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Over the last few months, we ran a survey in our weekly Market Trends Newsletter that revealed how cheaper gasoline prices have influenced not only our readers’ driving habits, but their savings habits as well.

When we asked our readers whether they were driving more since gas prices plummeted, nearly 77% said “No, I’m driving less than before.”

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According to the January 9 issue of HSH’s Market Trends Newsletter, Mortgage Rates Easing, May Crack 5%, “As long as lousy economic news continues to blare from headlines and televisions, mortgage rates will have at least some downward pressure. And, in fact, the average 30-year fixed might just fall below 5% this week.

Conforming rates led the downward charge this [past] week — the daily average for a 30-year conforming FRM landed at 5.05% on Friday, besting the previous daily low of 5.06% seen on December 17 — but jumbo rates are trending downward, too, with the average 30-year Jumbo FRM now standing at 6.82%, the lowest such rate since nearly a year ago.

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By the end of last week, market analysts got their first indications of activity for the new year. From the latest issue of HSH’s Market Trends newsletter: “Mortgage rates were basically unchanged [last] week, which included the first days of 2009. Thinly traded markets, vacations and holidays being what they are, a lack of any real direction is pretty typical.

Overall, the average 30-year fixed rate mortgage nudged a lone basis point higher. HSH’s Fixed-Rate Mortgage Indicator FRMI rose to 5.89%. The overall average for the 5/1 Hybrid ARM slipped back by fourteen basis points, landing at 5.80% for the week, the lowest such average since February 2008.

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From the latest issue of HSH’s Market Trends newsletter “Mortgage Rates Little Changed — and Still a Bargain”: “With 2008 poised to come to a close, mortgage markets are alive with low rates and refinance opportunities for good-credit-quality applicants. The last few weeks have been perhaps the best of the year for everyone involved in the mortgage industry. Ringing phones and chances to make commissions and fee income wouldn’t normally be so welcome in the midst of the holiday season, but after a very difficult year this situation is perhaps the most desired Christmas gift of all:”

Recent drops in interest rates have homeowners rushing to call local banks and mortgage lenders about refinancing. Loan applications are pouring in.

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The latest issue of HSH’s Market Trends Newsletter, “Mortgage Rates Turn Back the Clock,” breaks down the factors that allowed mortgage rates to drop to historic lows, as well as the ensuing effects:

“In any number of ways, the Federal Reserve was to thank for the drop in rates, but mostly because of the program announced on November 24 to support the mortgage markets. This week’s change in the Federal Funds target rate wasn’t meaningless in this regard, but regular readers of our work know that the Federal Funds target rate and long-term fixed-rate mortgage (FRM) rates have little to do with one another, at least directly.”

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The December 12 issue of HSH’s Market Trends Newsletter, “Mortgages: Loan Mods Not the Answer,” focused on last week’s slip in refi activity, the latest movement of mortgage rates, and the surge of loan-modification programs that have yet to produce their desired results.

“Conforming audiences are enjoying new, much lower costs for mortgage money and are continuing to respond to federal stimuli. Refinance activity did slip a little bit this week — not really surprising, given the impending holiday crush — but still managed to nearly hold onto last week’s big increase.”

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The latest issue of HSH’s Market Trends Newsletter, “Mortgage Rates and the Rumor Mill,” documents how the Fed’s aid to Main Street coupled with an industry rumor have served to keep mortgage rates down for nearly two weeks. Since the Fed’s announcement two weeks ago, mortgage rates have been moving in a direction that has enticed consumers. “Mortgage rates moved downward this week, continuing an enthusiastic response to the Federal Reserve’s November 24 plan, and the ongoing decline in still-influential Treasury yields.”

“Conforming mortgage rates have been the primary benefactor of the Federal Reserve’s influence. The average for a conforming 30-year fixed rate mortgage slipped to a weekly average of 5.57%, down considerably from an October 15 recent peak of 6.75%, and well below the 6.06% seen on the date of the announcement. As well, the 10-day string of rates below 6% represents the longest such string since February.”

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