Rates on the most popular types of mortgages stepped backward this week according to HSH.com's Weekly Mortgage Rates Radar. The average rate for conforming 30-year fixed-rate mortgages fell by seven basis points (0.07 percent) to 3.64 percent. Conforming 5/1 Hybrid ARM rates decreased by five basis points, closing the Wednesday-to-Tuesday wraparound weekly survey at average of 2.62 percent. Thirty-year fixed mortgage rates have retreated to late January, 2013, levels.
"The financial markets have become a little jittery of late," said Keith Gumbinger, vice president of HSH.com. "Mixed and uncertain results in Italian elections last week, and the sequestration stalemate in Washington as we began this one, pushed as least some investor cash back into bonds, driving mortgage rates lower."
Good news about the American economy may reverse some of that, he noted. "Solid housing market numbers and rising activity among service businesses have buoyed the stock market again, and the siren song of greater returns may again call money from the safe havens of bonds, lifting yields. However, with Federal Reserve Chairman Bernanke reiterating the Fed's support, and with plenty of economic trouble still here and abroad, bond yields and interest rates remain well tethered and are unlikely to stray too far from present levels."
Average mortgage rates and points for conforming residential mortgages for the week ending March 5, according to HSH.com:
Conforming 30-year fixed-rate mortgage
► Average rate: 3.64 percent
► Average points: 0.25
Conforming 5/1-year adjustable-rate mortgage
► Average rate: 2.62 percent
► Average points: 0.18
Average mortgage rates and points for conforming residential mortgages for the previous week ending February 26 were, according to HSH.com:
Conforming 30-year fixed-rate mortgage
► Average Rate: 3.71 percent
► Average Points: 0.25
Conforming 5/1-year adjustable-rate mortgage
► Average Rate: 2.67 percent
► Average Points: 0.17
