We research, you save.

Mortgage Rates Radar: Mortgage rates ease down this week

By   |  Posted in Mortgage Rates Radar

Rates on the most popular types of mortgages backed down this week according to HSH.com's weekly Mortgage Rates Radar. The average rate for conforming 30-year fixed-rate mortgages fell by six basis points (0.06 percent) to 4.37 percent. Conforming 5/1 Hybrid ARM rates decreased by four basis points, closing the Wednesday-to-Tuesday wraparound weekly survey at an average of 3.08 percent.

Global troubles

"A stumbling economy along with global troubles continues to be a beneficial force for mortgage shoppers," said Keith Gumbinger, vice president of HSH.com. "For the moment, mortgage rates are holding nearer to 2014 lows than highs. As the effects of winter weather begin to wear off, and if a peaceful solution can be found to quell the unrest in the Ukraine, mortgage rates can be expected to firm up again."

Mortgage-rate outlook hinges on employment report

At least a portion of the mortgage-rate outlook as we approach the spring homebuying season hinges upon the February employment report, due out on Friday. If job growth has not picked up from a December and January slump, the economy is likely to grind ahead, and so the Federal Reserve might consider maintaining rate-lowering QE purchases of Treasuries and Mortgage-Backed Securities for a while longer.

"Over the next few weeks, we should start to see whether it was winter weather or something else holding the economy back," adds Gumbinger. "If weather was the reason, we will see some firming in mortgage rates as the impact of cold and snow fades. However, if there are more fundamental issues at work, rates are more likely to continue to wander sideways at or about present levels."

Current mortgage rates

Average mortgage rates and points for conforming residential mortgages for the week ending March 4, according to HSH.com:

HSH.com Mortgage Rates Radar - Four Week Trend

Conforming 30-year fixed-rate mortgage

  • Average rate:   4.37 percent
  • Average points: 0.13

Conforming 5/1-year adjustable-rate mortgage

  • Average rate:   3.08 percent
  • Average points: 0.09

Average mortgage rates and points for conforming residential mortgages for the previous week ending February 25 were, according to HSH.com:

Conforming 30-year fixed-rate mortgage

  • Average Rate:   4.43 percent
  • Average Points: 0.18

Conforming 5/1-year adjustable-rate mortgage

  • Average Rate:   3.12 percent
  • Average Points: 0.09

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.

More help from HSH.com