HSH.com Weekly Mortgage Rates Radar: Mortgage Rates Drift Downward
13 January 2016 - 10:13PM
Rates on the most popular types of mortgages eased a little bit
again, according to HSH.com's Weekly Mortgage Rates Radar. The
average rate for conforming 30-year fixed-rate mortgages fell by
five basis points (0.05 percent) to 4.01 percent, its lowest
average rate since early December. Conforming 5/1 Hybrid ARM rates
decreased by nine basis points, closing the Wednesday-to-Tuesday
wraparound weekly survey at an average of 3.18 percent.
"Mortgage rates continue to be influenced by global economic
events and trends," said Keith Gumbinger, vice president of
HSH.com. "Of late, investors have been moving money out of riskier
holdings in stocks and expressing a preference for the safety of
bonds, especially U.S.-backed Treasury bonds. This is driving down
yields and tugging mortgage rates down along with them."
Another factor influencing interest rates is the continued
decline in oil prices. Along with slack global demand, declines in
this key input cost tend to keep inflation pressures in check.
Inflation erodes bond values over time, and the likelihood of less
inflation means investors demand less protection from it, so yields
decline somewhat. As well, a lack of building inflationary pressure
could keep the Federal Reserve from making many changes to
short-term rates this year.
"Economic troubles and little fear of any pickup in inflation
continue to be the mortgage shopper's friend," adds Gumbinger.
"That being said, there are limits to how far interest rates can
decline as long as the economy is growing and the Fed remains
committed to lifting them in the future. Still, seeing rates
heading back to the 4 percent mark should provide a bit of
additional cheer for homebuyers and refinancers, who may be
encouraged to get deals in place as a result."
Average mortgage rates and points for conforming residential
mortgages for the week ending January 12, according to HSH.com:
Conforming 30-year fixed-rate mortgage
- Average Rate: 4.01 percent
- Average Points: 0.20
Conforming 5/1-year adjustable-rate mortgage
- Average Rate: 3.18 percent
- Average Points: 0.11
Average mortgage rates and points for conforming residential
mortgages for the previous week ending January 05 were, according
to HSH.com: Conforming 30-year fixed-rate mortgage
- Average Rate: 4.06 percent
- Average Points: 0.17
Conforming 5/1-year adjustable-rate mortgage
- Average Rate: 3.27 percent
- Average Points: 0.08
Methodology
The Weekly Mortgage Rates Radar reports the average rates and
points offered on conforming 30-year fixed-rate mortgages and
conforming 5/1 ARMs. The weekly mortgage rate survey covers a large
sample of mortgage lenders and is conducted over a
Wednesday-to-Tuesday cycle, with data released every Wednesday.
HSH.com's survey helps consumers find the best rates on home loans
in changing market conditions. Unlike mortgage rate surveys that
report average rates only, the Weekly Mortgage Rates Radar's
inclusion of both average rates and average points provides a more
accurate view of mortgage terms currently offered by lenders.
Every week, HSH.com conducts a survey of mortgage rate data for
a wide range of consumer mortgage products including ARMs,
FHA-backed and jumbo mortgages, as well as home equity loans and
lines of credit from hundreds of direct lenders in the U.S. For
information on additional loan products, visit HSH.com.
About HSH.com
HSH.com is a trusted source of mortgage data, trends, news and
analysis. Since 1979, HSH's market research and commentary has
helped homeowners, buyers and sellers make smart financial choices
and save money on mortgage and home equity products. HSH.com, of
Riverdale, N.J., is owned and operated by QuinStreet, Inc. (NASDAQ:
QNST), one of the largest Internet marketing and media companies in
the world. QuinStreet is committed to providing consumers and
businesses with the information they need to research, find and
select the products, services and brands that best meet their
needs. The company is a leader in ethical marketing practices. For
more information, please visit QuinStreet.com.
CONTACT: Alex Bryant
650-703-5214
pr@hsh.com
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