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Mortgage Rates Radar: Mortgage rates start 2013 with slight decline

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Rates on the most popular types of mortgages declined slightly, according to HSH.com's Weekly Mortgage Rates Radar. The average rate for conforming 30-year fixed mortgage rates fell by three basis points (0.03 percent) to 3.49 percent. Conforming 5/1 Hybrid ARM rates decreased by five basis points, closing the Wednesday-to-Tuesday wraparound weekly survey at an average of 2.68 percent.

"An unsettled outlook with regard to the fiscal cliff was the focus for the stock and bond markets as we closed 2012," said Keith Gumbinger, vice president of HSH.com. "Word of an agreement of sorts came when the calendar turned, but it looks as though there is much drama yet to come as cuts to spending were largely kicked down the road for a couple of months. In short order, there will also be another fight over the debt limit ceiling, but hopefully not as acrimonious as the one last summer."

Gumbinger adds "A deal in place provides some certainty for tax policy, at least for the moment. Also, while certainty is good for the economy, it's perhaps not as good for interest rates, which have firmed a little since the agreement was announced. Optimism may prove to be short-lived, with the drag from higher taxes expected to trim economic growth somewhat in the coming months."

Average mortgage rates and points for conforming residential mortgages for the week ending January 1, according to HSH.com:

Conforming 30-year fixed-rate mortgage

·         Average rate:   3.49 percent

·         Average points: 0.24


Conforming 5/1-year adjustable-rate mortgage

·         Average rate:   2.68 percent

·         Average points: 0.22


HSH.com Mortgage Rates Radar - Four Week Trend

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


Conforming 30-year fixed-rate mortgage

·         Average Rate:   3.52 percent

·         Average Points: 0.17


Conforming 5/1-year adjustable-rate mortgage

·         Average Rate:   2.73 percent

·         Average Points: 0.16



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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