Foster City, CA (October 10, 2012) - Rates on the most popular types of mortgages either held fast or moved slightly upward, according to HSH.com's Weekly Mortgage Rates Radar. The average rate for conforming 30-year fixed-rate mortgages rose by four basis points (0.04 percent) to 3.52 percent. It was the first increase in the average rate for the most popular loan choice since mid-August. Conforming 5/1 Hybrid ARM rates remained unchanged, closing the Wednesday-to-Tuesday wraparound weekly survey at an average of 2.68 percent.
"Some positive news about the economy late last week pushed aside some of the gloom", said Keith Gumbinger, vice president of HSH.com. "The employment picture brightened a little bit and some measures of economic activity moved a bit higher. This stopped the recent decline in mortgage rates and caused a modest bump in the fixed-rate average this week."
Poor economic news fosters a lower interest rate environment, as investors discount the prospects for future inflation, and the demand for many kinds of credit slows, along with other considerations such as Federal Reserve policies.
"The lowest mortgage rates often come in the midst of the bleakest economic conditions," added Gumbinger, "but thankfully, we seem to be holding onto a modest growth pattern. The recent news even adds some optimism that the economy might gain a little steam in the coming months."
The persistent, low-interest rate environment which continues in the face of modest economic growth was a catalyst for HSH.com’s newest tool: “Are you a normal neighbor?” The tool allows homeowners to compare their household, mortgage, commute and auto insurance premium against their neighbors’. These days, keeping up with the Joneses is about less debt and lower bills.
Average mortgage rates and points for conforming residential mortgages for the week ending October 9, according to HSH.com:
Conforming 30-year fixed-rate mortgage
· Average rate: 3.52 percent
· Average points: 0.22
Conforming 5/1-year adjustable-rate mortgage
· Average rate: 2.68 percent
· Average points: 0.19
Average mortgage rates and points for conforming residential mortgages for the previous week ending October 02 were, according to HSH.com:
Conforming 30-year fixed-rate mortgage
· Average Rate: 3.48 percent
· Average Points: 0.24
Conforming 5/1-year adjustable-rate mortgage
· Average Rate: 2.68 percent
· Average Points: 0.19
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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Press Contact:
Andrew Heilman
775-784-3842
pr(at)hsh(dot)com
