Foster City, CA (PRWEB) June 20, 2012
Rates on the most popular types of mortgages were mixed this week, according to HSH.com's Weekly Mortgage Rates Radar. The average rate for conforming 30-year fixed-rate mortgages fell by 3 basis points (0.03 percent) to a new record low of 3.78 percent. Conforming 5/1 hybrid ARM rates increased by a single basis point, closing the Wednesday-to-Tuesday wraparound weekly survey at an average of 2.83 percent.
"Mortgage rates begin the summer at or near record-low levels, but whether they move lower or higher may depend upon what the Federal Reserve decides to do," said Keith Gumbinger, vice president of HSH.com. “The Fed’s present program of purchasing mortgage-backed securities comes to an end in 10 days, and it's not yet clear what – if anything – will come after that."
The Federal Reserve’s Operation Twist, a process of selling holdings of short-term Treasurys and buying longer-term ones to replace them, also concludes at the end of June. Operation Twist has been holding long-term rates lower.
"Treasury rates are already at record lows, so there might be little to be gained by continuing Operation Twist," said Gumbinger. "However, the mortgage market remains unsettled, and a case could be made to carry only the mortgage support program for a while longer yet. That would help mortgage rates to remain both low and stable for at least the rest of the summer. Absent the Fed's steadying influence, mortgage rates might move somewhat higher."
Average mortgage rates and points for conforming residential mortgages for the week ending June 19 were, according to HSH.com:
Conforming 30-year fixed-rate mortgage
- Average rate: 3.78 percent
- Average points: 0.30
Conforming 5/1-year adjustable-rate mortgage
- Average rate: 2.83 percent
- Average points: 0.24
Average mortgage rates and points for conforming residential mortgages for the previous week ending June 12 were, according to HSH.com:
Conforming 30-year fixed-rate mortgage
- Average rate: 3.81 percent
- Average points: 0.29
Conforming 5/1-year adjustable-rate mortgage
- Average rate: 2.82 percent
- Average points: 0.24
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
