Loans.org: Mortgage Rates Hit Low but Industrial Numbers Should Raise Red Flag

Los Angeles, CA (PRWEB) January 24, 2012

Freddie Mac reported that the average 30-year fixed home loan interest rate fell to a new record low on Thursday, settling at 3.88 percent. However, Freddie Mac?s vice president, Frank Nothaft, made a double-sided statement, hinting at both recovery and stagnation in the nation?s real estate market.

Nothaft said in a statement that rates for mortgage loans ?were nearly unchanged this holiday week in lieu of a mixed bag of economic data reports.?

The mortgage-security company?s vice president elaborated on that mixed bag of reports by revealing December provided a small 0.1 percent rise in retail sales and a meager 0.4 percent rise in industrial production. However, home builder confidence rose for the fourth consecutive month, leveling off at the highest level seen since June 2007.

While the statement shows positive forward movement, the industrial production rate should raise a red flag. Construction for industrial production is telling of the job market. Generally speaking, the rate has been on the rise, but every few months, industrial production has been taking a small dip?hinting the job market has yet to fully find its feet. The Federal Reserve Board is planning to release a revised version of their industrial production report on March 30, 2012.

Source: http://www.federalreserve.gov/releases/g17/current/

Despite the industrial market?s unexpected slow growth, Nothaft?s statement does reveal good news for the housing construction industry. Those in the construction business suffered a severe blow as the housing market collapsed, but Freddie Mac?s report that their morale remains high is very significant.

While housing sales only rose 0.1 percent, construction workers? morale is telling that they believe the Fed?s intentional move at keeping home loan interest rates low has been a smart and healthy move for the economy.

As jobs begin to return, and consumers begin taking out mortgage loans to fund property purchases priced at historic lows, the nation should experience a domino effect of economic stimulation.

To read more about this and other home loan financing issues, go to http://loans.org/mortgage where you will find informative articles, breaking news and answers to financing questions we all have. In addition, you can access a free-to-use quote-comparison generator that consumers can use to ensure they receive the lowest mortgage loan interest rates possible.

###

Find More Mac Press Releases

HSH.com Weekly Mortgage Rate Radar: Rates Firm Slightly As Economy Warms

(PRWEB) January 25, 2012

Rates on the most popular types of mortgages rose above record lows, according to HSH.com's Weekly Mortgage Rate Radar. The average rate for conforming 30-year fixed-rate mortgages rose by 6 basis points (0.06 percent) to 4.08 percent. Conforming 5/1 hybrid ARM rates increased by 3 basis points, closing the Wednesday-to-Tuesday wraparound weekly survey at an average of 3.00 percent.

?The economic news over the past few weeks has been fairly solid,? said Keith Gumbinger, vice president of HSH.com. ?Investors have felt more comfortable moving money away from the safe haven of bonds into riskier investments. That action nudges mortgage rates and other interest rates a little higher.?

Technical factors in the mortgage market may have also contributed to the recent rise. ?Fees that lenders pay for loans being guaranteed by Fannie Mae or Freddie Mac are increasing over the next few months, and those costs are ultimately passed along to consumers in the form of higher rates,? noted Gumbinger. However, when fully priced into the market, the bump in rates as a result of these fees is expected to be slight, perhaps an eighth of a percentage point or less.

Average mortgage rates and points for conforming residential mortgages for the week ending January 24 were, according to HSH.com:

Conforming 30-year fixed-rate mortgage

????Average rate: 4.08 percent
????Average points: 0.25

Conforming 5/1-year adjustable-rate mortgage

????Average rate: 3.00 percent
????Average points: 0.22

Average mortgage rates and points for conforming residential mortgages for the previous week ending January 17 were, according to HSH.com:

Conforming 30-year fixed-rate mortgage

????Average rate: 4.02 percent
????Average points: 0.30

Conforming 5/1-year adjustable-rate mortgage

????Average rate: 2.97 percent
????Average points: 0.25

Methodology

The Weekly Mortgage Rate 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 Rate 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 Pompton Plains, 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 meet their needs. The company is a leader in visitor-friendly marketing practices. For more information, please visit QuinStreet.com.

Press Contact

Andrew Heilman

775-784-3842

pr(at)hsh(dot)com

###