Rates Slip This Week

Rates on the most popular types of mortgages edged downward again this week, according to HSH.com’s Weekly Mortgage Rates Radar. The average rate for conforming 30-year fixed-rate mortgages fell by four basis points (0.04 percent) to 3.96 percent. Conforming 5/1 Hybrid ARM rates decreased by five basis points, closing the Wednesday-to-Tuesday wraparound weekly survey at an average of 2.98 percent.

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“The economic news has been somewhat disappointing of late, perhaps confirming the Fed’s decision to hold off increasing rates for a while,” said Keith Gumbinger, vice president of HSH.com. “However, the message from the Fed continues to suggest that a lift in rates will be coming during the year at some point, a case made again in recent days by both Fed Chair Janet Yellen and several FOMC [Federal Open Market Committee] members.”

The Fed demurred on a chance to lift short-term interest rates at its September meeting, citing concerns about global growth and the impact on the U.S. economy. Recently, economic data increasingly signal that growth in China continues to be sub-par and U.S. manufacturing is struggling under the weight of a strong dollar and slow export growth.

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“Mortgage rates have returned to being ‘data driven’,” adds Gumbinger. “If the economic data come in on the softer side, mortgage rates will tend to slip a little, as they did in the past week. Should we start to see a stronger tenor, a touch of firming is to be expected. That said, mortgage rates are merely wandering about, and will likely remain directionless until a trend one way or the other develops, or until we get closer to the date of the next Fed meeting.”

Average mortgage rates and points for conforming residential mortgages for the week ending September 29, according to HSH.com:

Conforming 30-year fixed-rate mortgage

  • Average Rate:   3.96 percent
  • Average Points: 0.15

Conforming 5/1-year adjustable-rate mortgage

  • Average Rate:   2.98 percent
  • Average Points: 0.10

Average mortgage rates and points for conforming residential mortgages for the previous week ending September 22 were, according to HSH.com:

Conforming 30-year fixed-rate mortgage

  • Average Rate:   4.00 percent
  • Average Points: 0.19

Conforming 5/1-year adjustable-rate mortgage

  • Average Rate:   3.03 percent
  • Average Points: 0.10

About The Author

[author_bio]

Tony Garritano
Tony Garritano is chairman and founder at PROGRESS in Lending Association. As a speaker Tony has worked hard to inform executives about how technology should be a tool used to further business objectives. For over 10 years he has worked as a journalist, researcher and speaker in the mortgage technology space. Starting this association was the next step for someone like Tony, who has dedicated his career to providing mortgage executives with the information needed to make informed technology decisions. He can be reached via e-mail at tony@progressinlending.com.