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

Mortgage rates lower still

 

Rates on the most popular types of mortgages pressed lower again, according to HSH.com's Weekly Mortgage Rates Radar. The average rate for conforming 30-year fixed-rate mortgages fell by another six basis points (0.06 percent) to 3.71 percent. Conforming 5/1 Hybrid ARM rates decreased by nine basis points, closing the Wednesday-to-Tuesday wraparound weekly survey at an average of 2.95 percent.

"Even though the U.S. economy is pretty strong, it's not immune to troubles around the globe," said Keith Gumbinger, vice president of HSH.com. "For example, slower growth among our trading partners will tend to temper export growth, while lower oil and commodities prices may produce deflation in some economies and also drag inflation down. The net result is lower interest and mortgage rates here, much to the benefit of homeowners looking to refinance."

Other central banks such as the European Central Bank are turning to Quantitative Easing (QE)-style stimulus measures, and government-issued bonds in various countries have fallen to or near record-low levels. This has served to intensify the wash of cash to U.S. shores, more than offsetting any firmer rates our domestic economy might manage.

"Even with new programs to prop up growth and combat deflation expected to hit the Eurozone shortly, it will take some time to see if they work, and investors will be rightfully skeptical, at least at first," adds Gumbinger. "The Fed tinkered with a variety of unique monetary policies before hitting a good combination, and until it's clear that these other central bank programs work, chances for homeowners to lock in rock-bottom mortgage rates will continue."

Average mortgage rates and points for conforming residential mortgages for the week ending January 20, according to HSH.com:

HSH.com Mortgage Rates Radar - Four Week Trend

Conforming 30-year fixed-rate mortgage

  • Average Rate:   3.71 percent
  • Average Points: 0.13

Conforming 5/1-year adjustable-rate mortgage

  • Average Rate:   2.95 percent
  • Average Points: 0.09

Average mortgage rates and points for conforming residential mortgages for the previous week ending January 13 were, according to HSH.com:

Conforming 30-year fixed-rate mortgage

  • Average Rate:   3.77 percent
  • Average Points: 0.18

Conforming 5/1-year adjustable-rate mortgage

  • Average Rate:   3.04 percent
  • Average Points: 0.09

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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