Skip to main content

Cloudy Future of QE Spikes Mortgage Rates to the 4.40 Percent Mark

NationalMortgageProfessional.com
Jun 26, 2013

Rates on the most popular types of mortgages rose significantly according to HSH.com's Weekly Mortgage Rates Radar as the average rate for conforming 30-year fixed-rate mortgages leapt by 34 basis points (0.34 percent) to 4.40 percent. Conforming 5/1 Hybrid ARM rates increased by 37 basis points, closing the Wednesday-to-Tuesday wraparound weekly survey at an average of 3.23 percent. "The aftermath of the Fed meeting and Mr. Bernanke's remarks at the concluding press conference about the future of QE continue to roll markets," said Keith Gumbinger, vice president of HSH.com. "Even though the chairman spoke about tapering QE over what will likely be an extended period of time--through mid-2014 at least--bond market participants headed for the exits. The sell-off in Treasuries and mortgages has left us with rates at nearly two-year highs ... it's as though QE3 never existed at all." The questions on everyone's mind: Will rates move even higher, and how much might the spike in rates damage the housing recovery? "It's not only the Fed chairman's words pushing rates higher, but also pretty solid economic data and a rosier outlook for the future," said Gumbinger. "The market is on the defensive right now, and sensitive to good news, since the stronger the economy, the faster the Fed is likely to act. As record low mortgage rates powered both the recovery in housing and the broader economy, it stands to reason that a slowdown in home sales is likely, should rates remain near these levels for long." Mortgage refinancing has also had an important impact on the economy, putting consumers on better financial footing and freeing up money for new spending. Excepting a relative handful of borrowers, "that portion of the market is closed," said Gumbinger. Average mortgage rates and points for conforming residential mortgages for the week ending June 25, according to HSH.com: Conforming 30-year fixed-rate mortgage ►Average rate: 4.40 percent ►Average points: 0.19 Conforming 5/1-year adjustable-rate mortgage ►Average rate: 3.23 percent ►Average points: 0.22 Average mortgage rates and points for conforming residential mortgages for the previous week ending June 18 were, according to HSH.com: Conforming 30-year fixed-rate mortgage ►Average Rate: 4.06 percent ►Average Points: 0.24 Conforming 5/1-year adjustable-rate mortgage ►Average Rate: 2.86 percent ►Average Points: 0.17 HSH.com's 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.
Published
Jun 26, 2013
Reports: Evergrande Group Arranges Bond Extension

Reuters, REDD say company's billionaire chairman has agreed to provide additional collateral to ensure a construction project tied to a $260M bond is completed.

Industry News
Oct 21, 2021
New American Funding Hires Regional Manager

Mark Tribuna will lead effort to expand company's partnership with affordable nonprofit builders in mid-Pacific region

Industry News
Oct 21, 2021
Rocket Pro Announces Initiatives To Boost Brokers

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