Rates on the most popular types of mortgages either held fast or moved slightly upward, according to HSH.com's Weekly Mortgage Rates Radar. The average rate for conforming 30-year fixed-rate mortgages (FRMs) rose by four basis points (0.04 percent) to 3.52 percent. It was the first increase in the average rate for the most popular loan choice since mid-August. Conforming 5/1 Hybrid ARM rates remained unchanged, closing the Wednesday-to-Tuesday wraparound weekly survey at an average of 2.68 percent.
"Some positive news about the economy late last week pushed aside some of the gloom", said Keith Gumbinger, vice president of HSH.com. "The employment picture brightened a little bit and some measures of economic activity moved a bit higher. This stopped the recent decline in mortgage rates and caused a modest bump in the fixed-rate average this week."
Poor economic news fosters a lower interest rate environment, as investors discount the prospects for future inflation, and the demand for many kinds of credit slows, along with other considerations such as Federal Reserve policies.
"The lowest mortgage rates often come in the midst of the bleakest economic conditions," said Gumbinger, "but thankfully, we seem to be holding onto a modest growth pattern. The recent news even adds some optimism that the economy might gain a little steam in the coming months."
The persistent, low-interest rate environment which continues in the face of modest economic growth was a catalyst for HSH.com’s newest tool: “Are you a normal neighbor?” The tool allows homeowners to compare their household, mortgage, commute and auto insurance premium against their neighbors’. These days, keeping up with the Joneses is about less debt and lower bills.
Average mortgage rates and points for conforming residential mortgages for the week ending Oct. 9, according to HSH.com:
Conforming 30-year fixed-rate mortgage
►Average rate: 3.52 percent
►Average points: 0.22
Conforming 5/1-year adjustable-rate mortgage
►Average rate: 2.68 percent
►Average points: 0.19
Average mortgage rates and points for conforming residential mortgages for the previous week ending Oct. 2 were, according to HSH.com:
Conforming 30-year fixed-rate mortgage
►Average Rate: 3.48 percent
►Average Points: 0.24
Conforming 5/1-year adjustable-rate mortgage
►Average Rate: 2.68 percent
►Average Points: 0.19
