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Mortgage Rates Radar: Fixed mortgage rates break rise

By   |  Posted in Mortgage Rates Radar

Rates on the most popular types of mortgages moved in opposite directions according to HSH.com's Weekly Mortgage Rates Radar. The average rate for conforming 30-year fixed mortgage rates fell by two basis points (0.02 percent) to 4.06 percent, breaking a six-week rise. Conforming 5/1 Hybrid ARM rates increased by six basis points, closing the Wednesday-to-Tuesday wraparound weekly survey at average 2.86 percent.

"It's all up to the Federal Reserve at this point," said Keith Gumbinger, vice president of HSH.com. "Signals about the fate of the Fed's quantative easing program will hopefully be revealed at the end of the FOMC meeting today, but the message there may be as ambiguous as the economic data has been lately."

The Federal Reserve is expected to begin to taper its purchases of Mortgage-Backed Securities and Treasury bonds before the year is out, but speculation has grown that it will come sooner, prompting the recent spike in mortgage rates. Mortgage rates rose from near-record lows in early May to a high, just last week, not seen in more than a year.

"Depending upon how clear the message is today about the fate of QE3, the pause in mortgage rate increases may be brief," adds Gumbinger. "However, we think any details about the Fed's plans will be vague, as they may want more data to assess any damage done to home sales or refinancing -- as a result of the recent run-up in mortgage rates -- before making any changes to the program."

Average mortgage rates and points for conforming residential mortgages for the week ending June 18, according to HSH.com:

HSH.com Mortgage Rates Radar - Four Week Trend

 

Conforming 30-year fixed-rate mortgage

·         Average rate:   4.06 percent

·         Average points: 0.24

 

Conforming 5/1-year adjustable-rate mortgage

·         Average rate:   2.86 percent

·         Average points: 0.17

 

Average mortgage rates and points for conforming residential mortgages for the previous week ending June 11 were, according to HSH.com:

 

Conforming 30-year fixed-rate mortgage

·         Average Rate:   4.08 percent

·         Average Points: 0.26

 

Conforming 5/1-year adjustable-rate mortgage

·         Average Rate:   2.80 percent

·         Average Points: 0.17

 

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 www.quinstreet.com

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