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Mortgage Rates Radar: Fixed mortgage rates fall to new lows

By   |  Posted in Mortgage Rates Radar

Rates on the most popular types of mortgages eased, with 30-year fixed rates moving to new record lows, according to HSH.com's Weekly Mortgage Rates Radar. The average rate for conforming 30-year fixed mortgage rates fell by six basis points (0.06 percent) to 3.45 percent. Conforming 5/1 Hybrid ARM rates decreased by seven basis points, closing the Wednesday-to-Tuesday wraparound weekly survey at an average of 2.67 percent.

"The fiscal cliff creeps even closer, and there is still no deal in sight," said Keith Gumbinger, vice president of HSH.com. "Add to that somewhat less encouraging economic news and mortgage rates have found some space to fall of late."

Even if a fiscal deal comes, the combination of federal spending cuts and tax increases seems likely to trim economic growth, at least for a while.

"Lost in the conversation about the damage falling off the 'cliff' would cause is a discussion about how much damage any agreement may cause," notes Gumbinger. "We are going to get one or another in just a few weeks' time, and economic growth could be trimmed as a result. Fortunately, slower growth is good for mortgage rates, so favorable financing opportunities should persist."

Average mortgage rates and points for conforming residential mortgages for the week ending December 04, according to HSH.com:

Conforming 30-year fixed-rate mortgage

·         Average rate:   3.45 percent

·         Average points: 0.25

Conforming 5/1-year adjustable-rate mortgage

·         Average rate:   2.67 percent

·         Average points: 0.21

HSH.com Mortgage Rates Radar - Four Week Trend

Average mortgage rates and points for conforming residential mortgages for the previous week ending November 27 were, according to HSH.com:

Conforming 30-year fixed-rate mortgage

·         Average Rate:   3.51 percent

·         Average Points: 0.23

Conforming 5/1-year adjustable-rate mortgage

·         Average Rate:   2.74 percent

·         Average Points: 0.18

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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