Last week investors sold off stocks and bonds, in part due to anticipation that the Federal Reserve will move to end its quantitative easing policy within a few weeks because of improving economic news. But good news for the economy is often bad news for mortgage rates. The experts at HSH.com anticipate rates to rise sharply this week.
According to HSH.com, last week the overall average rate for a 30-year fixed-rate home loan rose by 1 basis point (0.01 percent) to 4.59 percent. Average rates for 15-year fixed-rate mortgage loans fell by 1 basis point (0.01 percent) to 3.65 percent.FHA-insured, Thirty-year fixed-rate home loan rates rose by 3 basis points (0.03 percent) to an average rate of 4.25 percent. The average rate for a 5/1 Hybrid Adjustable Rate Mortgage (ARM), stayed the same at an average rate of 3.32 percent. Compare mortgage rates for your area before refinancing or applying for a purchase loan.
One particularly good piece of news last week was that the recession in Europe technically ended during the second quarter of 2013, which could help the U.S. economy begin growing faster. A second positive news item was that new unemployment claims for the week ending August 10 were the lowest so far during the economic recovery at 320,000.
Other economic news varied, including a mediocre report on retail sales and several reports of declining consumer confidence.
The mortgage experts at HSH.com anticipate that mortgage rates will rise this week, possibly by as much as 10 basis points depending on results from the minutes of the July 31 Federal Reserve meeting, new and existing home sales, and the weekly report of new unemployment claims.
Our live database of current mortgage rates can help you find the best mortgage rates in your area.