On a weekly basis, HSH.com, a recognized and long-established publisher of mortgage and consumer loan information, collects current data from mortgage lenders coast to coast. This week’s report, published on Monday, March 7, examines the current slight fall in mortgage rates.
“The drift downward in interest rates over the last few weeks, a cumulative move of better than an eighth percentage point on average, represents an opportunity for those in process to grab a slightly lower interest rate, and perhaps a reason for some potential home-buyers to step into the market ahead of the Spring home buying season,” observes Tim Manni, author of the March 7 article.
HSH.com’s mortgage tracker notes that 30-year fixed-rate mortgages eased at an average of 5.18% at the beginning of this month. Meanwhile, FHA-backed 30-year fixed-rate mortgages have declined to 4.81%.
According to the Beige Book, the Fed’s own survey of regional economic conditions, “If the economy continues on an upward path, we may just find a housing market which can contribute to the recovery before too long.”
While personal Incomes climbed by 4.6% over the past year, consumers do not appear to have increased expenditure habits much as a result of this (a mere 0.2% increase). However, an increase in savings was noticeable. The recession, it seems, had a direct impact on priorities. At this time, borrowing seems to be on an upward trend.
Lower mortgage rates and higher employment are not the only contributing factors, for these do not affect everyone in the same way. Awareness, more than anything, may be the ultimate stepping stone.
Recessions come and go. Some have seen several in their lifetime. History tends to repeat itself. Over time, fear gives way to keen observation, so that we learn and proceed with caution instead of remaining paralyzed.
Click HERE to read the full HSH.com Report
Click HERE to read the HSH Weekly Market Trends Report