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Mortgage Rates Radar: Fixed mortgage rates push higher

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 rose by 11 basis points (0.11 percent) to 4.35 percent. Conforming 5/1 Hybrid ARM rates decreased by one basis point, closing the Wednesday-to-Tuesday wraparound weekly survey at an average of 3.08 percent.

"Economic data is pushing the markets around, and the warmer feel from last week's data moved fixed mortgage rates noticeably higher," said Keith Gumbinger, vice president of HSH.com. "A relatively strong employment report plus upward revisions to hiring numbers for September and August suggest that the economy is holding its own. The current 2.8 percent rate for GDP growth in the third quarter was also unexpectedly strong. Other data suggest pretty good strength, too, and the stronger the economy is, the firmer mortgage rates may be."

Although still not the prevalent view among observers, the Federal Reserve might be considering starting to taper its purchases of mortgage and Treasury bonds in December. The Fed has taken pains to explain that the decision to do so would depend upon the state of the economy.

As far as the Fed decision goes, "It's still too soon to put December ‘on the table'", adds Gumbinger. "However, since they didn't rule it out at the last meeting, there is a chance that they might move then. That said, there is a lot of data to come between now and the next meeting, and as we've not fully seen the effects of the 16-day government shutdown in the data as of yet, the next few weeks will be key."

Mortgage rates

Average mortgage rates and points for conforming residential mortgages for the week ending November 12, according to HSH.com:

HSH.com Mortgage Rates Radar - Four Week Trend

Conforming 30-year fixed-rate mortgage

  • Average rate:   4.35 percent
  • Average points: 0.24

Conforming 5/1-year adjustable-rate mortgage

  • Average rate:   3.08 percent
  • Average points: 0.14

Average mortgage rates and points for conforming residential mortgages for the previous week ending November 05 were, according to HSH.com:

Conforming 30-year fixed-rate mortgage

  • Average Rate:   4.24 percent
  • Average Points: 0.19

Conforming 5/1-year adjustable-rate mortgage

  • Average Rate:   3.09 percent
  • Average Points: 0.11

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.

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