Following the release of last week’s mortgage rate survey statistics, rates were generally up for the sixth straight week.
Following the release of last week’s mortgage rate survey statistics, rates were generally up for the sixth straight week. Still, the increase in rates was not as fast as it had been in previous weeks, due to the release of minutes from the Federal Reserve’s most recent meeting and a lack of positive economic data in the past week.
According to HSH.com mortgage specialist Keith Gumbinger, “mortgage and other interest rates have probably overshot the mark, at least based upon the economic and inflation climate in which the increases have occurred.” To back up his postulation, Gumbinger cited the common trend of mortgage rates moving down yet “(spiking) upward”, just as what had recently happened, only to ease back down a bit.
With economic news from last week best described as moderate and the Fed’s minutes having assuaged most concerns of a shortened QE3 economic initiative, HSH.com believes mortgage rates may start dropping down a bit going forward.
Last week’s statistics from HSH do suggest a slower increase in rates compared to previous weeks. 30-year fixed-rate mortgages, regardless of whether conforming, non-conforming or jumbo, went up just five basis points from 4.10 percent to 4.15 percent. 15-year home loans in general moved up from 3.28 percent to 3.33 percent, while 30-year home loans backed by the FHA edged up by just three basis points from 3.74 percent to 3.77 percent.
5/1 Hybrid adjustable-rate mortgages, on the other hand, were up from 2.77 percent to 2.85 percent.