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HSH.com Mortgage Rates Radar: Your first report on the mortgage market this week

Mortgage rates break trend, drift lower

 

Rates on the most popular types of mortgages declined slightly this week, according to HSH.com's Weekly Mortgage Rates Radar. The average rate for conforming 30-year fixed-rate mortgages fell by four basis points (0.04 percent) to 4.24 percent. Conforming 5/1 Hybrid ARM rates decreased by just one basis point, closing the Wednesday-to-Tuesday wraparound weekly survey at an average of 3.23 percent.

Mortgage rates fall due to economic news

"The first multi-week increase in mortgage rates since early 2014 came to an end this week," said Keith Gumbinger, vice president of HSH.com. "Some of the latest economic news suggests a deceleration from a very strong second quarter of 2014, so rates had a little room to fall over the last few days."

Sales of both new and existing homes have been fair for much of the year, and were firmer through the summer months as mortgage rates hugged their 2014 lows. The National Association of Realtors reported August sales of existing homes ran at an annualized pace of more than 5 million for a third-consecutive month, while the Census Bureau noted sales of new homes leapt by 18 percent during the month.

Mortgage rates may firm up in fourth quarter

"Low mortgage rates remain a key component of the housing market," added Gumbinger. "Rates should remain pretty favorable for a while, but with the Federal Reserve committed to ending their extraordinary support programs at the end of the month, we may see a more volatile environment for mortgage rates just ahead, which are likely to be somewhat firmer as we move through the fourth quarter."

Average mortgage rates and points for conforming residential mortgages for the week ending September 30, according to HSH.com:

HSH.com Mortgage Rates Radar - Four Week Trend

Conforming 30-year fixed-rate mortgage

  • Average Rate: 4.24 percent
  • Average Points: 0.14

Conforming 5/1-year adjustable-rate mortgage

  • Average Rate: 3.23 percent
  • Average Points: 0.08

Average mortgage rates and points for conforming residential mortgages for the previous week ending September 23 were, according to HSH.com:

Conforming 30-year fixed-rate mortgage

  • Average Rate: 4.28 percent
  • Average Points: 0.16

Conforming 5/1-year adjustable-rate mortgage

  • Average Rate: 3.22 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.

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