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

Fixed mortgage rates firm slightly

 

Rates on the most popular types of mortgages were mixed this week, according to HSH.com's Weekly Mortgage Rates Radar. The average rate for conforming 30-year fixed-rate mortgages rose by three basis points (0.03 percent) to 4.28 percent. Conforming 5/1 Hybrid ARM rates decreased by two basis points, closing the Wednesday-to-Tuesday wraparound weekly survey at an average of 3.22 percent.

"The small multi-week rise for mortgage rates seems to have run out of steam for now," said Keith Gumbinger, vice president of HSH.com. "Rates climbed from the lowest levels of 2014 over the past few weeks, increasing by about an eighth of a percentage point, perhaps discouraging a few potential refinances but hardly enough to make much of a difference to prospective homebuyers."

Mortgage and other interest rates had been expected to be on the rise this year, but a confluence of events prevented that from occurring in a meaningful way. However, with a fairly solid economy and the pending end of the Fed's program to keep rates low, it  is likely that at least some minor increase in mortgage rates can be expected during the fall.

"At the end of its most recent meeting, the Federal Reserve laid out plans for managing interest rate policy, so we now know how they will do it, if not exactly when,” adds Gumbinger. “The Fed's own expectation is that it will begin lifting short-term rates in early- to mid-2015, but that may change if the economy allows it. Long-term mortgage and other interest rates aren't immune to the Fed's influence, so we may be in for a more volatile mortgage rate period once QE [Quantitative Easing] comes to an end next month."

New analysis at HSH.com provides a long-range view of how Federal Reserve policy may affect mortgage rates as we move into 2015 and beyond. See <a href="http://www.hsh.com/finance/mortgage/federal-reserve-policy-mortgage-rate-cycles.html" target="_new">"Federal Reserve Policy and Mortgage Rate Cycles"</a>.

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

HSH.com Mortgage Rates Radar - Four Week Trend

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

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

Conforming 30-year fixed-rate mortgage

  • Average Rate:   4.25 percent
  • Average Points: 0.20

Conforming 5/1-year adjustable-rate mortgage

  • Average Rate:   3.24 percent
  • Average Points: 0.10

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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