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Mortgage Rates Radar 02/10/2016: Fixed Rates Fall to April 2015 Levels

As they have for weeks, rates on the most popular types of mortgages eased again, according to HSH.com's Weekly Mortgage Rates Radar Mortage Rates Radar. The average rate for conforming 30-year fixed-rate mortgages fell by another six basis points (0.06 percent) to 3.75 percent. Conforming 5/1 Hybrid ARM rates also decreased by six basis points, closing the Wednesday-to-Tuesday wraparound weekly survey at an average of 2.96 percent.

"With nothing to break the recent trend, mortgage rates continue downward," said Keith Gumbinger, vice president of HSH.com. "Sluggish economic growth, little inflation, and strong global headwinds are all weighing on interest rates. Furthermore, investors increasinigly believe that the Fed won't raise rates anytime soon, so they continue to unwind bets that prepared for higher interest rates as the year progressed."

Rates should remain lower than expected

The Federal Reserve's own guidance back in December indicated that the central bank expected to lift the short-term rates it controls four or perhaps even five times in 2016. In the period since that meeting, the available data suggest that the economic climate has changed perceptibly. This calls, calling into question whether or not higher rates are needed at the moment to help balance the growth and inflation trend.

"Solid job growth, a decline in the unemployment rate and an uptick in wages would normally suggest that the Fed remains on track for raising rates multiple times this year." adds Gumbinger. "While they still ultimately may do so, the current climate more likely suggests at the very least that the Fed will be patient in their approach, and likely will change policy fewer times. Overall, it means the mortgage rates will be lower for a longer period than expected, which is good news for the housing market."

Average mortgage rates and points for conforming residential mortgages for the week ending February 09, according to HSH.com:

Conforming 30-year fixed-rate mortgage

  • Average rate:   3.75 percent
  • Average points: 0.17

Conforming 5/1-year adjustable-rate mortgage

  • Average rate:   2.96 percent
  • Average points: 0.11

Average mortgage rates and points for conforming residential mortgages for the previous week ending February 02 were, according to HSH.com:

Conforming 30-year fixed-rate mortgage

  • Average Rate:   3.81 percent
  • Average Points: 0.17

Conforming 5/1-year adjustable-rate mortgage

  • Average Rate:   3.02 percent
  • Average Points: 0.10

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.

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