Mortgage Rates Fall to Late-Spring Levelsby Tim Manni
According to the latest issue of HSH’s Market Trends Newsletter, “Home Loan Rates Slip Back; Lower To Come?,” mortgage rates fell last week to levels unseen since late spring, and have the potential to fall even lower.
“The overall average rate for 30-year fixed-rate mortgages revealed in HSH’s Fixed-Rate Mortgage Indicator (FRMI) nudged downward, slipping seven basis points (.07%) to close the first week of September at 5.56%. The overall average for 5/1 Hybrid ARMs lost five basis points to landing at 4.87%. Conforming 30-year FRMs finished the period at 5.25%, a level last seen in late May.”
“Mortgage rates have slipped back to the levels seen last spring. If they hold through the next couple of weeks, we should see a seasonal resumption in activity, particularly for refinances. If the equity rally is substantially over for now, awaiting confirmation that the economy is ready to power forward, that should be good news for mortgage rates.”
“While mortgage rates would have to fall a lot more to revisit the attention-getting levels we saw earlier this year, we are nearing the point at which could we could see some additional activity. The trend has been mostly flat-to-down in recent weeks, and that should be the case for next week.”
Click here to continue reading “Home Loan Rates Slip Back; Lower To Come?” HSH’s free weekly Market Trends Newsletter, an in-depth analysis of various financial markets of the week prior, is published every Monday. Email subscribers receive it in your inbox by Friday night, so sign up today! Also, be sure to check in with our Market Trends blog for all news relating to any weekly shift in mortgage rates.
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