Skip to main content

Rates Hitting Highest Point in Nearly a Year

NationalMortgageProfessional.com
Jun 05, 2013

Rates on the most popular types of mortgages leapt to the highest point in more than a years' time, according to HSH.com's Weekly Mortgage Rates Radar. The average rate for conforming 30-year fixed-rate mortgages jumped by nineteen basis points (0.19 percent) to 3.99 percent. Conforming 5/1 Hybrid ARM rates increased by 10 basis points, closing the Wednesday-to-Tuesday wraparound weekly survey at an average of 2.74 percent. "Bond and mortgage markets continue to prepare themselves for an early exit by the Fed," said Keith Gumbinger, vice president of HSH.com. "Up until recently, expectations were that the Fed would begin to taper purchases of mortgage-backed securities (MBS) and Treasury bonds late in 2013, but that timeframe appears to have moved to September, possibly sooner." The Federal Reserve continues to purchase a total of $85 billion per month in MBS and Treasuries to help keep interest rates low and mortgage markets liquid. "Before the Fed begins to pull back, we will need to see a lot more solid economic data, especially in labor markets. The news of late suggests that the economy is holding its own, but little more, and that's with QE still fully in play. It could very well be that investors are getting ahead of themselves, given the lack of compelling evidence that the economy is ready to run without these supports," adds Gumbinger. Still, he acknowledges, without a spate of weak data, mortgage rates are less likely to decline, or decline significantly. This is discussed in greater detail in HSH.com’s latest Two-Month Forecast. Average mortgage rates and points for conforming residential mortgages for the week ending June 4, according to HSH.com: Conforming 30-year fixed-rate mortgage Average rate:   3.99 percent Average points: 0.23 Conforming 5/1-year adjustable-rate mortgage Average rate:   2.74 percent Average points: 0.17 Average mortgage rates and points for conforming residential mortgages for the previous week ending May 28 were, according to HSH.com: Conforming 30-year fixed-rate mortgage Average Rate:   3.80 percent Average Points: 0.19 Conforming 5/1-year adjustable-rate mortgage Average Rate:   2.64 percent Average Points: 0.15
Published
Jun 05, 2013
Rocket Pro Announces Major Initiatives

Company brings Rocket Tech, the Rocket Network and Rocket Marketing to mortgage brokers across the country

Industry News
Oct 19, 2021
FormFree Taps Amazon Web Services For Consumer Financial Identity Solutions

FormFree will use Amazon's blockchain technology to manage its latest consumer Financial DNA solution and its newly introduced FormFree Exchange.

Tech
Oct 19, 2021
Synergy One Lending Increases Its Capital By $50M

San Diego-based Synergy One Lending Inc. completed a $50 million corporate note financing with a consortium of institutional investors.

Industry News
Oct 19, 2021
TransUnion Sees Untapped Growth Opportunity For The Mortgage Industry

A study conducted by TransUnion, which explores the creditworthiness of low-to-moderate income consumers, revealed that the segment represents a $300 billion growth opportunity for the mortgage industry.

Analysis and Data
Oct 19, 2021
Zillow Stock Falls After It Halts Buying Houses To Flip

Zillow’s stock fell nearly 10% Monday after the company announced its Zillow Offers division would stop buying homes.

Industry News
Oct 19, 2021
MBA Swears In New Officers For 2021-22

Kristy Fercho, executive vice president and head of home lending at Wells Fargo, is the new chairman.

Industry News
Oct 18, 2021