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Mortgage Rates Radar: Mortgage rates creep higher

By   |  Posted in Mortgage Rates Radar

Rates on the most popular types of mortgages moved a little higher according to HSH.com's Weekly Mortgage Rates Radar. The average rate for conforming 30-year fixed mortgage rates rose by five basis points (0.05 percent) to 4.39 percent. Conforming 5/1 Hybrid ARM rates increased by just a single basis point, closing the Wednesday-to-Tuesday wraparound weekly survey at an average of 3.22 percent.

"The stalemate in Washington continues without resolution, and investors are growing increasingly concerned," said Keith Gumbinger, vice president of HSH.com. "Should no agreement be reached, the impending debt ceiling deadline of Oct. 17 will have unknown consequences for interest rates, but it is a good bet that they will rise."

Meanwhile, and although not yet at a dire stage, the closure of the federal government continues to gum up the mortgage market as IRS income verifications and FHA reviews continue to be hard to come by. A backlog of inbound requests to the IRS and at the FHA is certainly not going to improve until those agencies are fully up and running again.

"The effects of the government shutdown will eventually slow activity in the housing market," adds Gumbinger. "However, while that's more of a political fight over spending priorities, the debt ceiling issue is about being able to pay yesterday's obligations. In the mortgage market, we know that failing to make agreed-upon payments can ruin credit ratings. Without a lift of the debt ceiling, will Uncle Sam become Uncle Subprime? The hope is that a deal can reached before there are any effects on the low mortgage rates borrowers have come to rely upon."

Average mortgage rates and points for conforming residential mortgages for the week ending October 15, according to HSH.com:

HSH.com Mortgage Rates Radar - Four Week Trend

Conforming 30-year fixed-rate mortgage

  • Average rate:   4.39 percent
  • Average points: 0.23

Conforming 5/1-year adjustable-rate mortgage

  • Average rate:   3.22 percent
  • Average points: 0.16

Average mortgage rates and points for conforming residential mortgages for the previous week ending October 08 were, according to HSH.com:

Conforming 30-year fixed-rate mortgage

  • Average Rate:   4.34 percent
  • Average Points: 0.18

Conforming 5/1-year adjustable-rate mortgage

  • Average Rate:   3.21 percent
  • Average Points: 0.13

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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