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

Mortgage rates ease this week

 

Rates on the most popular types of mortgages edged downward, according to HSH.com's Weekly Mortgage Rates Radar. The average rate for conforming 30-year fixed-rate mortgages fell by two basis points (0.02 percent) to 4.09 percent. Conforming 5/1 Hybrid ARM rates also decreased by two basis points, closing the Wednesday-to-Tuesday wraparound weekly survey at an average of 3.06 percent.

Mortgage and interest rates have moved higher in recent weeks

"With the latest Fed meeting behind us, financial markets would like nothing more than to prepare and position for the upcoming summer doldrums," said Keith Gumbinger, vice president of HSH.com. "However, with the Greek debt mess unresolved, there are still too many unknowns to get too comfortable at the moment. It's still not clear whether a resolution will be reached, and that is keeping the markets a bit on edge right now."

Mortgage and other interest rates have moved higher in recent weeks as better economic news in the U.S. and abroad has surfaced. In turn, this improvement puts the Federal Reserve on a path to start lifting short-term interest rates as soon as September. Conversely, economic and monetary troubles in the Eurozone have proven beneficial to U.S. mortgage borrowers over the last couple of years, as foreign investors plowed money into U.S. bonds for safe haven. It is possible that we may see some of this again if a resolution isn't reached, or if Greece exits the Euro as a currency. The coming days will tell.

No major dip in rates expected

"If the situation isn't resolved to the liking of the markets, we could see a dip in interest rates here on a flight-to-safety buy," adds Gumbinger. "That said, it is likely that some form of agreement will be worked out, so it's best not to expect any major dip in rates. In fact, there remains more upward pressure on mortgage rates at the moment than not, so waiting around to get a mortgage deal in place isn't likely the best idea."

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

HSH.com Mortgage Rates Radar - Four Week Trend

Conforming 30-year fixed-rate mortgage

  • Average Rate:   4.09 percent
  • Average Points: 0.21

Conforming 5/1-year adjustable-rate mortgage

  • Average Rate:   3.06 percent
  • Average Points: 0.11

Average mortgage rates and points for conforming residential mortgages for the previous week ending June 16 were, according to HSH.com:

Conforming 30-year fixed-rate mortgage

  • Average Rate:   4.11 percent
  • Average Points: 0.16

Conforming 5/1-year adjustable-rate mortgage

  • Average Rate:   3.08 percent
  • Average Points: 0.07

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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