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Mortgage Rates Radar: Mortgage rates storm higher again

By   |  Posted in Mortgage Rates Radar

Rates on the most popular types of mortgages rose sharply again, according to HSH.com's Weekly Mortgage Rates Radar. The average rate for conforming 30-year fixed mortgage rates leapt by 16 basis points (0.16 percent) to 4.61 percent. Conforming 5/1 Hybrid ARM rates also rose 16 basis points, closing the Wednesday-to-Tuesday wraparound weekly survey at an average of 3.46 percent.

"Strengthening employment data put the bond and mortgage markets on the defensive again," said Keith Gumbinger, vice president of HSH.com. "The employment report for June, released last Friday, was firmer than expected, and upward revisions to April and May figures showed that hiring is on stronger footing than was previously believed."

The Federal Reserve has stated that it would like to wind down its QE programs for purchasing mortgage-backed securities and Treasuries as the unemployment rate approaches 7 percent. In June, it remained at 7.6 percent.

"Although the unemployment rate didn't budge during the month, the growth in hiring makes it more likely that it will decline sooner rather than later," added Gumbinger. "Investors continue to adjust their bond and mortgage holdings, hoping to get out of the way of the Fed's pending moves. Until the tapering of QE actually begins, probably in September but perhaps later, volatility in mortgage rates is likely to continue."

Since hitting 2013 lows in early May, fixed mortgage rates have risen by more than a percentage point and are at levels last seen in August 2011.

Average mortgage rates and points for conforming residential mortgages for the week ending July 9, according to HSH.com:

HSH.com Mortgage Rates Radar - Four Week Trend

 

Conforming 30-year fixed-rate mortgage

·         Average rate:   4.61 percent

·         Average points: 0.21

 

Conforming 5/1-year adjustable-rate mortgage

·         Average rate:   3.46 percent

·         Average points: 0.20

 

Average mortgage rates and points for conforming residential mortgages for the previous week ending July 2 were, according to HSH.com:

 

Conforming 30-year fixed-rate mortgage

·         Average Rate:   4.45 percent

·         Average Points: 0.18

 

Conforming 5/1-year adjustable-rate mortgage

·         Average Rate:   3.30 percent

·         Average Points: 0.19

 

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 www.quinstreet.com

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