We’ve discussed the influence rising mortgage rates have had on the market a good deal over the past few weeks. Although recent rate increases have brought us off all-time lows, current mortgage rates–near 4 percent–remain historically low and still present a great borrowing opportunity to refinancing homeowners and home buyers alike.
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Below is an excerpt from of our latest Market Trends newsletter, Keith Gumbinger’s weekly examination of the economic conditions that influenced mortgage rates. Sign up to receive the Market Trends in your inbox Friday evening.
As of last week, mortgage rates maintained an upward trend for the sixth consecutive week, but the surge in rates–sparked by minutes from the Federal Reserve meeting, subsequent comments by Fed officials and moderate economic data–thankfully appears to be slowing. Read the rest of this entry »
There are short-term and long-term effects of rising mortgage rates. In recent weeks, the presence of 4 percent mortgage rates sent many to the sidelines. Weekly mortgage applications showed us that borrowers were waiting for rates to fall once more before they decided to move forward with their refinance or purchase.
That short-term shock is bound to wear off as borrowers realize that 4 percent mortgage rates aren’t the end of the world, and they are, in fact, still historically low.
Rates on the most popular types of mortgages continued their upward march according to HSH.com’s Weekly Mortgage Rates Radar. The average rate for conforming 30-year fixed-rate mortgages rose by nine basis points (0.09 percent) to 4.08 percent. Conforming 5/1 Hybrid ARM rates increased by six basis points, closing the Wednesday-to-Tuesday wraparound weekly survey at an average of 2.80 percent.
“The rise in mortgage rates continues unabated again this week,” said Keith Gumbinger, vice president of HSH.com. “Although the size of the increase was smaller, it is still unwelcome as the housing market tries to gain momentum.”
Homeowners who refinanced during the first quarter of 2013 locked in low fixed interest rates, reduced monthly mortgage payments and, in some cases, refinanced into shorter terms, according to a recent quarterly Freddie Mac report.
Borrowers took advantage of near-record-low mortgage rates to continue to strengthen their financial position, Freddie Mac Chief Economist Frank Nothaft said in a statement.
Below is an excerpt from of our latest Market Trends newsletter, Keith Gumbinger’s latest examination of the economic conditions that influenced mortgage rates. Sign up to receive the Market Trends in your inbox Friday evening.
If anything, the waters became even more muddied last week as it pertains to any impending change in the Fed’s QE policies. The latest data didn’t suggest enough strength as to tilt the scale toward a hastened exit, nor was there enough weakness to swell hopes that the Fed’s process of buying mortgage-backed securities and Treasuries will continue for a longer stretch yet.
Rates on the most popular types of mortgages leapt to the highest point in more than a years’ time, according to HSH.com’s Weekly Mortgage Rates Radar.
The average rate for conforming 30-year fixed-rate mortgages jumped by 19 basis points (0.19 percent) to 3.99 percent. Conforming 5/1 Hybrid ARM rates increased by 10 basis points, closing the Wednesday-to-Tuesday wraparound weekly survey at an average of 2.74 percent.
Mortgage and other interest rates moved up sharply over the past week, seemingly on little more than optimism that we’ve reached some kind of self-sustaining economic level, and markets reacted as though the Fed has already begun or even finished the “tapering” process of removing QE3. It hasn’t, and even though there are suggestions that they will at some point, there’s no indication that this process is ready to start.
Below is an excerpt from of our latest Market Trends newsletter, Keith Gumbinger’s latest examination of the economic conditions that influenced mortgage rates. Sign up to receive the Market Trends in your inbox Friday evening.
Mortgage and other interest rates moved up sharply over the past week, seemingly on little more than optimism that we’ve reached some kind of self-sustaining economic level.
The post below first appeared on U.S. News & World Report’s Home Front blog on April 26. A special thanks to Meg Handley and the entire Home Front team:
It’s common sense that low mortgage rates are important to the housing market. They make purchasing a home more affordable and make refinancing more attractive for current homeowners.
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.
