July 18, 2012 (Foster City, CA) – Rates on the most popular types of mortgages moved deeper into record territory according to HSH.com's Weekly Mortgage Rates Radar. The average rate for conforming 30-year fixed-rate mortgages fell by four basis points (0.04 percent) to 3.70 percent. Conforming 5/1 Hybrid ARM rates decreased by three basis points, closing the Wednesday-to-Tuesday wraparound weekly survey at average 2.78 percent. Both mortgage products are at new record lows.
"Repeated record lows for mortgage rates are having a beneficial effect on the housing market," said Keith Gumbinger, vice president of HSH.com. "Perhaps more important than new record lows is that rates have held stable or decreased in the weekly surveys for months, allowing homebuyers time to plan, execute and complete their transactions."
Federal Reserve Chairman Bernanke noted as much in his testimony before Congress on Tuesday. His prepared text stated that, "In part because of historically low mortgage rates, both new and existing home sales have been gradually trending upward...". In addition, the latest survey from the National Association of Home Builders, an index of market activity, moved to its highest level in over five years in July and has moved up appreciably over the past six months as mortgage rates have slowly declined.
Value is created not just from low mortgage rates, but stable ones as well, noted Gumbinger. "Knowing that the mortgage rate you will get at the end of the buying transaction will be the same or even better than when you started can provide a potential homebuyer a strong boost of confidence, making it easier to want to start the process in the first place."
Average mortgage rates and points for conforming residential mortgages for the week ending July 17, according to HSH.com:
Conforming 30-year fixed-rate mortgage
· Average rate: 3.70 percent
· Average points: 0.26
Conforming 5/1-year adjustable-rate mortgage
· Average rate: 2.78 percent
· Average points: 0.24
Average mortgage rates and points for conforming residential mortgages for the previous week ending July 10 were, according to HSH.com:
Conforming 30-year fixed-rate mortgage
· Average Rate: 3.74 percent
· Average Points: 0.27
Conforming 5/1-year adjustable-rate mortgage
· Average Rate: 2.81 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.
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Press Contact:
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