Renewed Eurozone worries drive mortgage rates to new record lows
Foster City, CA (PRWEB) May 16, 2012
Rates on the most popular types of mortgages retreated to new record lows, according to HSH.com's Weekly Mortgage Rates Radar. The average rate for conforming 30-year fixed-rate mortgages fell by 6 basis points (0.06 percent) to 3.91 percent. Conforming 5/1 hybrid ARM rates decreased by 5 basis points, closing the Wednesday-to-Tuesday wraparound weekly survey at an average of 2.85 percent.
“A deepening economic slump overseas is forcing mortgage rates downward, as investors once again seek a haven for their money in the relative safety of U.S.-backed debt,” said Keith Gumbinger, vice president of HSH.com.
A worsening financial and political crisis in Greece has led to speculation that the country might exit from the eurozone. This would destabilize the currency and risk tipping Spain and Italy into deeper crises of their own.
"A troubled world is good for U.S. homebuyers and homeowners, at least for now," added Gumbinger. "However, difficulties overseas are likely to slow our already muted pace of growth this summer, making it even harder to keep our own recovery moving forward. Ultimately, that benefits no one."
Average mortgage rates and points for conforming residential mortgages for the week ending May 15 were, according to HSH.com:
Conforming 30-year fixed-rate mortgage
- Average rate: 3.91 percent
- Average points: 0.27
Conforming 5/1-year adjustable-rate mortgage
- Average rate: 2.85 percent
- Average points: 0.22
Average mortgage rates and points for conforming residential mortgages for the previous week ending May 8 were, according to HSH.com:
Conforming 30-year fixed-rate mortgage
- Average rate: 3.97 percent
- Average points: 0.24
Conforming 5/1-year adjustable-rate mortgage
- Average rate: 2.90 percent
- Average points: 0.21
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 Pompton Plains, 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 meet their needs. The company is a leader in visitor-friendly marketing practices. For more information, please visit QuinStreet.com.
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