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Mortgage Rates Radar: Fixed mortgage rates rise but decline expected

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Rates on the most popular types of mortgages moved in different directions, according to HSH.com's Weekly Mortgage Rates Radar. The average rate for conforming 30-year fixed mortgage rates rose by a single basis points (0.01 percent) to 3.71 percent. Conforming 5/1 Hybrid ARM rates decreased by three basis points, closing the Wednesday-to-Tuesday wraparound weekly survey at an average of 2.67 percent.

"A rough Monday for the stock market put some money back into bonds and mortgages," said Keith Gumbinger, vice president of HSH.com. "Despite the small rise in this week’s survey and another equity rally on Tuesday, mortgage rates should break their upward trend over the past six weeks and ease a bit as the week progresses."

Uncertainty surrounding an election in Italy fostered a rush into bonds on Monday, driving the influential 10-year Treasury bond down to its lowest daily yield in a month's time. Even solid news about new home sales and reassurance from Federal Reserve Chairman Bernanke about the Fed's commitment to its quantitative easing (QE) programs failed to lift yields much.

"Stock investors like that the Fed is doing all it can to promote economic growth," said Gumbinger. For mortgage borrowers, though "uncertainty, fear and poor economic prospects are the keys to producing lower mortgage rates, such as those we had as we approached the 'fiscal cliff' at the end of 2012."

Average mortgage rates and points for conforming residential mortgages for the week ending February 26, according to HSH.com:

HSH.com Mortgage Rates Radar - Four Week Trend

Conforming 30-year fixed-rate mortgage

·         Average rate:   3.71 percent

·         Average points: 0.25


Conforming 5/1-year adjustable-rate mortgage

·         Average rate:   2.67 percent

·         Average points: 0.17

Average mortgage rates and points for conforming residential mortgages for the previous week ending February 19 were, according to HSH.com:

Conforming 30-year fixed-rate mortgage

·         Average Rate:   3.70 percent

·         Average Points: 0.29

Conforming 5/1-year adjustable-rate mortgage

·         Average Rate:   2.70 percent

·         Average Points: 0.23


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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