Rates on the most popular types of mortgages rose slightly, according to HSH.com's Weekly Mortgage Rates Radar. The average rate for conforming 30-year fixed-rate mortgages increased by two basis points (0.02 percent) to 3.55 percent. Conforming 5/1 Hybrid ARM rates rose by four basis points, closing the Wednesday-to-Tuesday wraparound weekly survey at an average of 2.69 percent.
"Mortgage rates are mostly wandering around directionless," said Keith Gumbinger, vice president of HSH.com. "They continue backing and filling, waiting for clear signals that the economy is picking up steam or losing it. With the tax bite from the fiscal cliff solution just starting to show in paychecks, it's a fair bet that some slowdown in spending is likely. How much is anyone's guess at this point."
Should the economy also slow along with it, a slowdown in consumer spending could presage lower mortgage rates ahead.
"Mortgage rates are holding a little above bottom, but that's probably based more on the three percent growth in the third quarter of 2012 than any assessment of the current climate, let alone a forward looking one. There remain plenty of economic challenges just ahead."
To help mortgage shoppers look forward, HSH.com released its latest Two-Month Forecast for mortgage rates and mortgage markets this week. It projects that mortgage rates should remain generally favorable through late winter.
Average mortgage rates and points for conforming residential mortgages for the week ending Jan. 22, according toHSH.com:
Conforming 30-year fixed-rate mortgage
►Average rate: 3.55 percent
►Average points: 0.28
Conforming 5/1-year adjustable-rate mortgage
►Average rate: 2.69 percent
►Average points: 0.22
Average mortgage rates and points for conforming residential mortgages for the previous week ending January 15 were, according to HSH.com:
Conforming 30-year fixed-rate mortgage
►Average Rate: 3.53 percent
►Average Points: 0.29
Conforming 5/1-year adjustable-rate mortgage
►Average Rate: 2.65 percent
►Average Points: 0.24
