Rates on the most popular types of mortgages were slightly higher or flat compared to last week according to HSH.com's Weekly Mortgage Rates Radar. The average rate for conforming 30-year fixed-rate mortgages rose by four basis points (0.04 percent) to 3.67 percent. Conforming 5/1 Hybrid ARM rates were unchanged, closing the Wednesday-to-Tuesday wraparound weekly survey at an average of 2.71 percent.
"A smaller rise in fixed rates this week, but for much the same reason as the larger one last week, with good news about the economy being the culprit again," said Keith Gumbinger, vice president of HSH.com. “As the economic outlook slowly improves, investors are less inclined to stash cash in bonds as they look for greater returns, and that, in turn, lifts yields and mortgage rates."
There's nothing at the moment that suggests a continuing rise for mortgage rates, he notes. "Even if the negative initial reading for GDP during the fourth quarter of 2012 can be disregarded, we are at best still in a slow-growth pattern with little forward momentum. Couple this with current Federal Reserve policy to keep mortgage rates low and plenty of fiscal challenges yet to be addressed, and it seems unlikely that rates can go much higher that what we have presently."
Average mortgage rates and points for conforming residential mortgages for the week ending February 5, according to HSH.com:
Conforming 30-year fixed-rate mortgage
►Average rate: 3.67 percent
►Average points: 0.22
Conforming 5/1-year adjustable-rate mortgage
►Average rate: 2.71 percent
►Average points: 0.18
Average mortgage rates and points for conforming residential mortgages for the previous week ending January 29 were, according to HSH.com:
Conforming 30-year fixed-rate mortgage
• Average Rate: 3.63 percent
• Average Points: 0.25
Conforming 5/1-year adjustable-rate mortgage
• Average Rate: 2.71 percent
• Average Points: 0.20
