Yes, this is bad. If all the server needs in order to authenticate you is this (never changing) hash, then the has is your password now. This is no better than sending the password in the clear, because all the attacker needs in order to impersonate you is that hash.
Instead, if you want to hash passwords for transmission, the way you do it is through a challenge-reponse system. This way, the same hash is never sent twice. But this is not a good idea, because...
It's more important that the password not be stored on your server. TLS/SSL is sufficient to prevent any sort of man-in-the-middle attack. That part is solved, Just use TLS and don't worry about it. But you do have to worry about your server getting hacked and your password database getting leaked. Publishing other people's password databases is all the rage these days, and you don't want to be one of those caught not hashing their database. There's just no excuse.
So, transmit your passwords plain-text inside an encrypted connection, but store them hashed on the server. If you do anything else, anything else at all, then you're doing it wrong.