Foster City, CA (PRWEB) May 23, 2012
Rates on the most popular types of mortgages moved in slightly different directions, according to HSH.com's Weekly Mortgage Rates Radar. The average rate for conforming 30-year fixed-rate mortgages declined by 4 basis points (0.04 percent) to a new record low of 3.87 percent. Conforming 5/1 hybrid ARM rates increased by a single basis point from last week's new low, closing the Wednesday-to-Tuesday wraparound weekly survey at an average of 2.86 percent.
"While mortgage rates managed another slight ease over the last five days, there are some signs they are stabilizing," said Keith Gumbinger, vice president of HSH.com. "The good news is that these rates seem to be attracting homebuyers back into the market."
The National Association of Realtors reported a 3.4 percent increase in sales of existing homes in April and more homes on the market for potential homebuyers to see. The low rates also continue to support refinancing activity.
"Persistently low interest rates are starting to have positive effects on the housing market," noted Gumbinger. "HARP 2.0 refinances will start to put money back in homeowners’ pockets, and strong affordability at these interest rate levels should foster demand for both new and existing homes. Provided the economy holds fairly firm, we could be in for a solid close to the spring homebuying season."
Average mortgage rates and points for conforming residential mortgages for the week ending May 22 were, according to HSH.com:
Conforming 30-year fixed-rate mortgage
- Average rate: 3.87 percent
- Average points: 0.27
Conforming 5/1-year adjustable-rate mortgage
- Average rate: 2.86 percent
- Average points: 0.22
Average mortgage rates and points for conforming residential mortgages for the previous week ending May 15 were, according to HSH.com:
Conforming 30-year fixed-rate mortgage
- Average rate: 3.91 percent
- Average points: 0.27
Conforming 5/1-year adjustable-rate mortgage
- Average rate: 2.85 percent
- Average points: 0.22
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.
Press Contact
Andrew Heilman
775-784-3842
pr(at)hsh(dot)com
