Skip to main content

Weak Jobs Numbers Lead to Dip in Mortgage Rates

NationalMortgageProfessional.com
Jan 15, 2014

Rates on the most popular types of mortgages moved down notably this week, according to HSH.com's Weekly Mortgage Rates Radar. The average rate for conforming 30-year fixed-rate mortgages fell by eight basis points (0.08 percent) to 4.53 percent. Conforming 5/1 Hybrid ARM rates decreased by seven basis points, closing the Wednesday-to-Tuesday wraparound weekly survey at an average of 3.26 percent. "Just as the economy was performing reliably, even gaining momentum, a report came that took some of the wind out of the sails," said Keith Gumbinger, vice president of HSH.com. "The soft employment report for December is a bit of a two-edged sword, as it brings lower mortgage rates to homeowners looking to refinance and homebuyers looking to get deals in place, but comes at the expense of the broader economy, especially people looking for a job." About 1.3 million Americans saw their unemployment benefits expire at the end of December, so the weak pace of hiring seems even more painful. With new mortgage rules in place, borrowers usually need at least two years' worth of income documentation to be able to qualify for a mortgage, and bouts of unemployment and periods with no income make it that much more difficult for people hoping to buy or refinance a home sometime soon. "Low mortgage rates are little more than an attractive nuisance if you can't qualify for a loan," notes Gumbinger. "Here's hoping that the dip in new hiring turns out to be just a blip in an otherwise fair pattern, or we may not see the kind of housing market in 2014 we are hoping to see." Average mortgage rates and points for conforming residential mortgages for the week ending Jan. 14, according to HSH.com: Conforming 30-year fixed-rate mortgage ►Average rate: 4.53 percent ►Average points: 0.18 Conforming 5/1-year adjustable-rate mortgage ►Average rate: 3.26 percent ►Average points: 0.13 Average mortgage rates and points for conforming residential mortgages for the previous week ending January 07 were, according to HSH.com: Conforming 30-year fixed-rate mortgage ►Average Rate: 4.61 percent ►Average Points: 0.19 Conforming 5/1-year adjustable-rate mortgage ►Average Rate: 3.33 percent ►Average Points: 0.11
Published
Jan 15, 2014
KBRA Assigns Preliminary Ratings To SEMT 2021-6

Pool Of 497 First-Lien Loans Combined Have A Principal Balance Of Nearly $449M

Industry News
Sep 16, 2021
Fugo Appoints Bahlman As VP, Client Relations & Sales

Brings 19 Years of Experience To Texas-Based Back-Office Support Company

Industry News
Sep 16, 2021
Envoy Mortgage Expands To Atlanta

Envoy Mortgage lender expanded its Southeast operations to Atlanta, GA.

Industry News
Sep 15, 2021
FHFA Suspends Controversial PSPA Amendments

Today, the FHFA will be suspending controversial provisions added to the Preferred Stock Purchase Agreement (PSPA) on January 14, 2021.

Industry News
Sep 15, 2021
Covius Holdings To Acquire Nationwide Title Clearing

All 670 NTC Employees, Including Senior Management, Will Join Covius

Industry News
Sep 14, 2021
MBA Appoints AVP Of Diversity, Equity, & Inclusion

Promotes Amber Lawrence From Position As Associate Director Of Career Development Programs

Industry News
Sep 14, 2021