Skip to main content

Fear of Fiscal Cliff Causes Rate Fluctuation

Jan 09, 2013

Rates on the most popular types of mortgages moved both up and down this week, according to HSH.com's Weekly Mortgage Rates Radar. The average rate for conforming 30-year fixed-rate mortgages (FRMs) rose by six basis points (0.06 percent) to 3.55 percent. Conforming 5/1 Hybrid ARM rates decreased by a single basis point, closing the Wednesday-to-Tuesday wraparound weekly survey at average 2.67 percent. "With a partial deal reached to pull us back off the 'fiscal cliff,' markets breathed a sigh of relief," said Keith Gumbinger, vice president of HSH.com. "Money flowed out of safe-haven hiding places in Treasuries and back into stocks, lifting yields and mortgage rates a little." The agreement reached last week covered the tax portion of the program, but a broad agreement on spending cuts was kicked down the road for a couple of months. A deal on spending cuts may happen at a time when fighting over the raising the nation's debt ceiling is in full swing, so the present optimism may fade in coming weeks. "This mild flare higher in mortgage rates has already started to retreat somewhat. With Federal Reserve programs fully in place to keep overall and especially mortgage rates low it continues to be a fantastic opportunity to buy a home or refinance,” said Gumbinger. Average mortgage rates and points for conforming residential mortgages for the week ending Jan. 8, according to HSH.com: Conforming 30-year fixed-rate mortgage ►Average rate: 3.55 percent ►Average points: 0.26 Conforming 5/1-year adjustable-rate mortgage ►Average rate: 2.67 percent ►Average points: 0.20 Average mortgage rates and points for conforming residential mortgages for the previous week ending Jan. 1 were, according to HSH.com: Conforming 30-year fixed-rate mortgage ►Average Rate: 3.49 percent ►Average Points: 0.24 Conforming 5/1-year adjustable-rate mortgage ►Average Rate: 2.68 percent ►Average Points: 0.22
About the author
Published
Jan 09, 2013
MBA Urges Shift To Single Credit Report Model, Citing Cost Savings And Efficiency

MBA says tri-merge credit checks cost lenders up to $100 per loan, doubling since pre-COVID, as industry pushes for a cheaper, single-report model

Jun 16, 2025
Fairway Acquires Hallmark Home Mortgage Through Asset Purchase

Hallmark to become new Fairway division, gets access to Fairway's Fairway's product portfolio, tech, and support resources

Jun 13, 2025
Trigger Leads Bill Clears Senate

Final push now left to House; reconciled bill needed next

Housing Market Outlook: Brighter Days To Come

NAR Chief Economist Yun calls lower mortgage rates ‘magic bullet’ to boost home sales

Jun 11, 2025
Redfin Shareholders Say Yes To Acquisition By Rocket

Nearly 99% of Redfin shareholders vote to approve merger, though fewer vote yes to compensation for company’s execs

Jun 10, 2025
Play Ball: Ishbias Could Add Another Team To Their Roster

Justin Ishbia in agreement to potentially take over as owner of Chicago White Sox — but not for several years yet

Jun 09, 2025