New ‘Two-month forecast for mortgage rates’
Every nine weeks or so, HSH.com releases a new “Two-month forecast for mortgage rates.”
Here’s the mortgage rate prediction we offered back on February 17: Read the rest of this entry »
Mortgage rates hold near record lows
Although the economy isn’t back to “square one,” mortgage rates are. Of course, that’s to the benefit of homeowners looking to refinance and potential homebuyers shopping for homes. Whether you are able to or will respond to these recurring interest-rate opportunities remains to be seen, and will largely depend upon the economy continuing to recover. Unfortunately, it looks as though we have entered an economic soft patch, and the kind of upward momentum needed to move us to “expansion” from “recovery” isn’t happening.
Mortgage at or near record lows
Record-low mortgage rates continue this week
Mortgage rates returned to record lows at the end of last week and the trend has continued into this week. Below is an excerpt from the latest Mortgage Rates Radar weekly survey:
Rates on the most popular types of mortgages shrank back to record lows, according to HSH.com’s Weekly Mortgage Rate Radar. The average rate for conforming 30-year fixed-rate mortgages fell by 6 basis points (0.06 percent) to 4.00 percent. Conforming 5/1 hybrid ARM rates decreased by 5 basis points, closing the Wednesday-to-Tuesday wraparound weekly survey at an average of 2.90 percent.
Mortgage rates fall back to record lows
Below is an excerpt from the latest Market Trends newsletter, a weekly examination of what moved mortgage rates the week prior:
As expected, mortgage rates retreated further from their recent upward spurt. An accumulation of economic optimism prompted a rise in mortgage rates, but that enthusiasm has since moderated among plenty of mediocre economic data.
According to the Federal Reserve, a “modest to moderate” economic expansion is occurring; that pace is unlikely to support conditions which can sustain higher interest rates.
Lending standards still tightening
It has been clear in the last few years that lenders have gotten very picky when it comes to mortgage applications. Prior to the meltdown, information submitted on a supermarket bag and written in pencil probably would have worked for some lenders.
While such ideas may seem absurd, some lending practices were not far off. In his highly regarded book, “The Monster,” Michael W. Hudson showed exactly how some shady lenders operated. The goal of many predatory lenders was not to find highly qualified borrowers who could prove they could pay back their loan, it was to approve mortgage applications by the pound from individuals who were unlikely to understand that cheaper and better financing was available elsewhere. Read the rest of this entry »
Mortgage rates decline from week prior
Below is the latest Mortgage Rate Radar release from HSH.com—a Wednesday-to-Tuesday wraparound weekly survey of the two most-popular types of mortgages. This Tuesday evening release precedes that of the MBA and Freddie Mac.
Rates on the most popular types of mortgages moved downward on worse-than-expected employment data, according to HSH.com’s Weekly Mortgage Rate Radar. The average rate for conforming 30-year fixed-rate mortgages fell by 4 basis points (0.04 percent) to 4.06 percent. Conforming 5/1 hybrid ARM rates decreased by 3 basis points, closing the Wednesday-to-Tuesday wraparound weekly survey at an average of 2.95 percent.
Lower mortgage rates should continue this week
Below is an excerpt from HSH.com’s latest Market Trends newsletter, written by Keith Gumbinger, vice president of HSH.com. The HSH Market Trends is published every Monday with the latest on the mortgage market. Want to read it as soon as it’s published on Friday? Sign up for a free email subscription!
Mortgage markets have shifted from winter tranquility to spring volatility. Mortgage rates rose recently as positive assessments of the economy became more frequent and reliable. Perhaps in response to that, Fed Chairman Bernanke took pains to note the still-considerable challenges which face the economy and the Fed’s low-rate stance, driving mortgage rates back downward.
Mortgage rates grow turbulent, react to Fed minutes
Rates on the most popular types of mortgages eased during the week ending April 3, according to HSH.com’s latest Weekly Mortgage Rate Radar.
The average rate for conforming 30-year fixed-rate mortgages fell by 6 basis points (0.06 percent) to 4.10 percent. Conforming 5/1 hybrid ARM rates decreased by 8 basis points, closing the Wednesday-to-Tuesday wraparound weekly survey at an average of 2.98 percent.
Mortgage rates falling once more
As expected, mortgage rates settled back a little bit last week after an upward move totaling 15 basis points over the last two weeks. General upward momentum in the economy fostered that rise, but at least a few doubts about the economy’s forward momentum seem to have crept back in.
Although rates have bumped a little off their historic bottoms of February, the modest move upward should not create any additional serious turbulence for the housing market. Even in a worst-case scenario, an eighth-percentage point increase in a loan’s interest rate isn’t sufficient to ruin most deals, and that slight increase could be “bought down” through the payment of about a half-point fee, perhaps less.
Mortgage rates still rising, but don’t panic
Rates on the most popular types of mortgages increased again in the past week, according to HSH.com’s latest Weekly Mortgage Rate Radar. The average rate for conforming 30-year fixed-rate mortgages rose by 3 basis points (0.03 percent) to 4.16 percent. Conforming 5/1 hybrid ARM rates increased by 5 basis points, closing the Wednesday-to-Tuesday wraparound weekly survey at an average of 3.06 percent.
“Although rates moved upward this week, the size of the increase is small,” said Keith Gumbinger, vice president of HSH.com. “It appears that the interest rates that most influence mortgages have settled back this week compared to last, so mortgage rates should ease back a little as the week progresses.”
