Foster City, CA (August 1, 2012) – 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-rate mortgages rose by two basis points (0.02 percent) to 3.68 percent. Conforming 5/1 Hybrid ARM rates increased by three basis points, closing the Wednesday-to-Tuesday wraparound weekly survey at an average of 2.76 percent.
"Mortgage rates moved a little higher this week, following other interest rates upward," said Keith Gumbinger, vice president of HSH.com. "Most of the move in the markets can be attributed to Mario Draghi, the president of the European Central Bank (ECB), who stated that the ECB 'is ready to do whatever it takes to preserve the euro'. In turn, this helped ease some of the tension and fear which have been pushing stock and bond markets around for months; as a result, and temporarily at least, some investor money shifted away from safe havens, pushing bond yields and rates a little higher."
Interest rates may also have firmed a little on growing speculation that the Federal Reserve is becoming more likely to make a move to foster economic growth.
"The Fed closes their latest meeting tomorrow," noted Gumbinger," and while there isn't a strong likelihood of an immediate move, there is always a possibility that one may unexpectedly come, and the Fed has several options to pursue if they wish."
Average mortgage rates and points for conforming residential mortgages for the week ending July 31, according to HSH.com:
Conforming 30-year fixed-rate mortgage
· Average rate: 3.68 percent
· Average points: 0.25
Conforming 5/1-year adjustable-rate mortgage
· Average rate: 2.76 percent
· Average points: 0.21
Average mortgage rates and points for conforming residential mortgages for the previous week ending July 24 were, according to HSH.com:
Conforming 30-year fixed-rate mortgage
· Average Rate: 3.66 percent
· Average Points: 0.29
Conforming 5/1-year adjustable-rate mortgage
· Average Rate: 2.73 percent
· Average Points: 0.23
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.
###
Press Contact:
Andrew Heilman
775-784-3842
pr(at)hsh(dot)com
