Every action has a reaction. If you’re a potential homebuyer and/or refinancer, a dip in mortgage rates should certainly prompt you to act. As the title of our latest Market Trends Newsletter suggests, mortgage rates continued on their upward trend last week, and as far as this week goes, not much is expected to change.
Despite the shortened holiday week, mortgage rates managed a slight tick upwards last week as 2010 came to a close:
HSH.com’s overall mortgage tracker — our weekly Fixed-Rate Mortgage Indicator (FRMI) — found that the overall average rate for 30-year fixed-rate mortgages rose by four basis points, (.04%) to end HSH.com’s national survey at 5.19%. FHA-backed offers, so crucial to first-time homebuyers and low-equity refinancers, increased by the same amount to finish the last week of 2010 at 4.82%, while the overall average rate for 5/1 Hybrid ARMs remained below the 4% threshold with an average initial five-year rate of 3.95% HSH.com’s FRMI and other public data series includes rates for conforming, jumbo, and most recently the GSE’s “high-limit” conforming products and so cover much of the mortgage-borrowing public.
For months now we’ve been saying that rates have to firm up sooner or later. But week after week the headlines of our weekly newsletters stay the same. Last week was no different.
Mortgage rates fell again last week, according to the latest issue of our Market Trends Newsletter, “Great Rates, but Summer Bummer.” The weekly average for the 30-year Conforming rate (week ending July 23) fell to 4.64%, down from 4.69% the week prior.
However, it’s not just the 30-year Conforming rate that’s falling: Read the rest of this entry »
The financial downturn nearly wiped out every home loan product but conforming loans (those backed by Fannie and Freddie). For the last two years or so, qualifying for jumbo loans has been even more difficult than usual. However, things seem to be turning a corner for borrowers looking to get an expensive home loan. Some recent headlines seems to say it all: “Jumbo Mortgages: Bigger Is Better, Again,” “Jumbo Loans Easier to Find.”
Given the fact that jumbo mortgages — loans greater than $417,000 in most areas — make up such a small portion of the marketplace (currently about 3-5%), and given that they generally affect only “wealthy” people, you may be saying to yourself (and me), “big deal, how does this affect me?”
With spring officially here, the busy homebuying season begins on solid ground (rates wise). According to the latest issue of HSH.com’s Market Trends Newsletter, mortgage rates moved last week “by the barest amount.”
The all-important “spring housing season” is coming soon now that the official start of Spring is upon us. Although there are questions to how long rock-bottom interest rates will last, what with expiring Fed programs and a gradually improving economy, we will at least start out on a very positive note.
As we predicted, mortgage rates firmed up last week, marching upward from their record lows seen on December 1.
“As expected, mortgage rates edged higher [last] week. Some better economic news, some lingering glow from November’s employment report [on December 4], and light investor demand for new Treasury debt boosted rates a little. We may see some hangover from that [this] week, if the relationship between the 10-year Treasury yield and average mortgage rates holds true.”
“For [last] week, HSH.com’s FRMI, our overall average for mortgage rates (including conforming, jumbo and agency jumbo), increased by five basis points (0.05%), closing the survey period at 5.29%. Thirty-year fixed-rate Jumbo loans rose less than conforming did, a move of five basis points compared to the eight seen for agency-backed loans. Meanwhile, the overall average for 5/1 Hybrid ARMs also saw a five-basis point upward move, closing the survey week at 4.61%.”
Mortgage rates stood their ground last week amidst a “turbulent” week in the markets. According to the latest issue of HSH’s Market Trends Newsletter, “Rates Steady This Week,” that’s one trend that may not last much longer.
“Mortgage rates managed to finish a fairly turbulent week in the markets at a level unchanged from [the week before]. There was a bit of underlying volatility to the stock and bond markets, though, which suggests that the quiet demeanor of rates [last] week probably won’t last.”
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.
Despite a week filled with inconsistent economic data, mortgage rates managed to fall last week to spring-time levels. According to the latest issue of HSH’s Market Trends Newsletter, “Rates Leg Down a Little,” 30-year conforming rates dropped to their “their lowest average rate since the late March to late May period.”
“With September now behind us, stock markets started October in a fashion similar to other Octobers: they sold off to some degree. After a pretty good third quarter’s profits were booked, at least some of those gains from equity sales have been stashed back into Treasuries, driving yields down. This is turn is pressuring mortgage rates down to the lows of earlier this year.”
The rate for 30-year fixed jumbo mortgage loans fell to an average of 6.14% last week, the lowest weekly average since September 2005, according to HSH Associates. Jumbo rates are even down significantly from this time last year, when they rung in at 7.36%.
Renewed Interest
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.
