January 2nd, 2011Mortgage rates rise at the end of 2010
HSH.com’s overall mortgage tracker — our weekly Fixed-Rate Mortgage Indicator (FRMI) — found that the overall average rate for 30-year fixed-rate mortgages rose by four basis points, (.04%) to end HSH.com’s national survey at 5.19%. FHA-backed offers, so crucial to first-time homebuyers and low-equity refinancers, increased by the same amount to finish the last week of 2010 at 4.82%, while the overall average rate for 5/1 Hybrid ARMs remained below the 4% threshold with an average initial five-year rate of 3.95% HSH.com’s FRMI and other public data series includes rates for conforming, jumbo, and most recently the GSE’s “high-limit” conforming products and so cover much of the mortgage-borrowing public.
Mortgage rates in 2010
The graph below shows both conforming and jumbo rates throughout 2010. Last year was a historical one in terms of mortgage rates. We witnessed “multi-generational lows”, and the end of 2010 saw a quick reversal in the downward trend that seemed to last most of the year. As we’ve warned many times before, mortgage rates always rise more quickly than they fall:
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