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Mortgage Rates Radar: A welcome drop in mortgage rates this week

By   |  Posted in Mortgage Rates Radar

Rates on the most popular types of mortgages moved downward according to HSH.com's Weekly Mortgage Rates Radar. The average rate for conforming 30-year fixed mortgage rates fell by 11 basis points (0.11 percent) to 4.46 percent. Conforming 5/1 Hybrid ARM rates decreased by four basis points, closing the Wednesday-to-Tuesday wraparound weekly survey at an average of 3.38 percent.

"With this week’s decline, fixed mortgage rates have trimmed off the very top of the recent rise," said Keith Gumbinger, vice president of HSH.com. "With a full one percentage point rise between early May and early July, any declines are welcome, especially if they are of meaningful size, such as the one this week."

Some potential borrowers are probably still catching their breath and adjusting their homebuying plans because of the sharp spike in rates. This week's decline isn't enough to cause any mass rush back into the market for consumers who were on the fence, but for those actively in the homebuying process, the dip is a chance to recapture some of the rise in costs the bump in rates fostered.

Gumbinger adds: "It's not much, but for a borrower with a $200,000 loan, the difference in payment between last week and this week is about $13 per month. That's about four "free" gallons of gas each month at present prices, so there is some value to be had."

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

HSH.com Mortgage Rates Radar - Four Week Trend

Conforming 30-year fixed-rate mortgage

  • Average rate:   4.46 percent
  • Average points: 0.20

Conforming 5/1-year adjustable-rate mortgage

  • Average rate:   3.38 percent
  • Average points: 0.18

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

Conforming 30-year fixed-rate mortgage

  • Average Rate:   4.57 percent
  • Average Points: 0.24

Conforming 5/1-year adjustable-rate mortgage

  • Average Rate:   3.42 percent
  • Average Points: 0.16

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 Riverdale, 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 best meet their needs. The company is a leader in ethical marketing practices. For more information, please visit QuinStreet.com.

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