We research, you save.
Got Questions On Rates? (855) 610-2972
December 27th, 2010 (Modified on December 28th, 2010)

Mortgage rates stop rising



Seesaw percent and house Mortgage rates ended their six-week climb last week. Recently, mortgage rates reached five-month highs, but a holiday-shortened week and a less-than-stellar economic performance caused rates to fall back a few basis points:

HSH.com’s overall mortgage tracker — our weekly Fixed-Rate Mortgage Indicator (FRMI) — found that the overall average rate for 30-year fixed-rate mortgages eased back just a little, shedding three basis points (.03%) to end HSH.com’s national survey at 5.15%. Conforming 30-year FRMs also declined by a like amount. FHA-backed offers, so crucial to first-time homebuyers and low-equity refinancers, declined by a line basis point to end the holiday-shortened week at 4.78%, while the overall average rate for 5/1 Hybrid ARMs rose by a like amount to land at 3.89% for the week. HSH.com’s FRMI and other public data series includes rates for conforming, jumbo, and most recently the GSE’s “high-limit” conforming products and so cover much of the mortgage-borrowing public.

Warmer economic growth has been largely to blame for the increase in rates during the fall, but this increase has been exacerbated to a degree by the Federal Reserve’s stimulus program, some post-election improvement in moods and a tax compromise which lends some certainty (and a little boost) to the outlook as we roll into 2011.

Mortgage rates matter less this time of year. With two holiday-shortened weeks in a row, we don’t really expect any real movement in rates this week:

Mortgage rates and housing markets matter somewhat less than do holidays this time of year. Next week’s a holiday-shortened one as well, with a fairly light calendar of economic data due out. The leveling of interest rates for this week should largely turn into a two-week affair by the time next week rolls around, and we expect little change if any in mortgage rates.

CLICK HERE to continue reading the latest issue of our Market Trends Newsletter, “Mortgage Rates Stop Climbing.”

HSH.com’s free Market Trends Newsletter, an in-depth analysis of various financial markets from the week prior, is published every Monday. Email subscribers receive it in their inbox 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.

One Response to “Mortgage rates stop rising”

  1. Mortgage rates stop rising | HSH Financial News Blog | Mortgage Says: December 27th, 2010 at 10:54 pm

    […] Mortgage rates stop rising | HSH Financial News Blog « bank of america mortgage Know How to Indite a Excellent Bank of … […]

Leave a Comment

Receive Updates via Email

Delivered by FeedBurner

About the HSH Blog

HSH.com's daily blog focuses on the latest developments in the mortgage and housing markets. Our mission is to relate how changes in mortgage rates and housing policy, as well as the latest financial news, impacts consumers, homebuyers and industry insiders alike. Our 30-plus years of experience in the mortgage industry gives us an edge as we break down the latest changes in an ever-changing market.

Our bloggers:

Tim Manni

Tim Manni is the Managing Editor of HSH.com and the author of their daily blog, which concentrates on the latest developments in the mortgage and housing markets.

Connect With Us

  • rss feed icon
  • facebook icon
  • twitter icon

Compare Lowest Mortgage Rates