HSH.com Weekly Mortgage Rates Radar: Mortgage Rates Drift Downward

HSH.com releases its latest Weekly Mortgage Rates Radar showing a gentle downward trend continuing for mortgage rates in the seven-day period ending January 12, as investors continue to try to work around China's issues and gauge the inflation repercussions of falling oil prices. The Weekly Mortgage Rates Radar reports the average rates and points offered by lenders for the two most popular types of mortgages, the conforming 30-year fixed-rate mortgage and the conforming 5/1 adjustable-rate mortgage (ARM).

FOSTER CITY, Calif., Jan. 13, 2016 (GLOBE NEWSWIRE) -- Rates on the most popular types of mortgages eased a little bit again, according to HSH.com's Weekly Mortgage Rates Radar. The average rate for conforming 30-year fixed-rate mortgages fell by five basis points (0.05 percent) to 4.01 percent, its lowest average rate since early December. Conforming 5/1 Hybrid ARM rates decreased by nine basis points, closing the Wednesday-to-Tuesday wraparound weekly survey at an average of 3.18 percent.

"Mortgage rates continue to be influenced by global economic events and trends," said Keith Gumbinger, vice president of HSH.com. "Of late, investors have been moving money out of riskier holdings in stocks and expressing a preference for the safety of bonds, especially U.S.-backed Treasury bonds. This is driving down yields and tugging mortgage rates down along with them."

Another factor influencing interest rates is the continued decline in oil prices. Along with slack global demand, declines in this key input cost tend to keep inflation pressures in check. Inflation erodes bond values over time, and the likelihood of less inflation means investors demand less protection from it, so yields decline somewhat. As well, a lack of building inflationary pressure could keep the Federal Reserve from making many changes to short-term rates this year.

"Economic troubles and little fear of any pickup in inflation continue to be the mortgage shopper's friend," adds Gumbinger. "That being said, there are limits to how far interest rates can decline as long as the economy is growing and the Fed remains committed to lifting them in the future. Still, seeing rates heading back to the 4 percent mark should provide a bit of additional cheer for homebuyers and refinancers, who may be encouraged to get deals in place as a result."

Average mortgage rates and points for conforming residential mortgages for the week ending January 12, according to HSH.com:

Conforming 30-year fixed-rate mortgage

  • Average Rate: 4.01 percent
  • Average Points: 0.20

Conforming 5/1-year adjustable-rate mortgage

  • Average Rate:   3.18 percent
  • Average Points: 0.11

Average mortgage rates and points for conforming residential mortgages for the previous week ending January 05 were, according to HSH.com:
Conforming 30-year fixed-rate mortgage

  • Average Rate:   4.06 percent
  • Average Points: 0.17

Conforming 5/1-year adjustable-rate mortgage

  • Average Rate:   3.27 percent
  • Average Points: 0.08


The 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. HSH.com's survey helps consumers find the best rates on home loans in changing market conditions. Unlike mortgage rate surveys that report average rates only, the Weekly Mortgage Rates Radar's inclusion of both average rates and average points provides a more accurate view of mortgage terms currently offered by lenders.

Every week, HSH.com conducts a survey of mortgage rate data for a wide range of consumer mortgage products including ARMs, FHA-backed and jumbo mortgages, as well as home equity loans and lines of credit from hundreds of direct lenders in the U.S. For information on additional loan products, visit HSH.com.

About HSH.com

HSH.com is a trusted source of mortgage data, trends, news and analysis. Since 1979, HSH's market research and commentary has helped homeowners, buyers and sellers make smart financial choices and save money on mortgage and home equity products. HSH.com, of Riverdale, N.J., is owned and operated by QuinStreet, Inc. (NASDAQ: QNST), one of the largest Internet marketing and media companies in the world. QuinStreet is committed to providing consumers and businesses with the information they need to research, find and select the products, services and brands that best meet their needs. The company is a leader in ethical marketing practices. For more information, please visit QuinStreet.com.


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