Rates on the most popular types of mortgages rose sharply this week according to HSH.com's Weekly Mortgage Rates Radar. The average rate for conforming 30-year fixed-rate mortgages increased by nine basis points (0.09 percent) to 3.73 percent. Conforming 5/1 Hybrid ARM rates rose by 10 basis points, closing the Wednesday-to-Tuesday wraparound weekly survey at an average of 2.72 percent.
"Solid economic data continues to take its toll on bond markets, driving mortgage rates higher this week," said Keith Gumbinger, vice president of HSH.com. "When major stock market indicators run at or near record highs, it's a fair bet that mortgage rates won't be running toward record lows."
Although the bump in rates is unwelcome as we approach the traditional spring homebuying season, good news about the economy in general, and housing markets in specific, are far more important than a small rise in rates.
"Fixed rate mortgages have only returned to levels we celebrated as new record lows just last year, so there's no reason for grave concern at the moment," added Gumbinger. "A few extra dollars in a monthly mortgage payment shouldn't be enough to keep any home purchase or refinance from happening."
Average mortgage rates and points for conforming residential mortgages for the week ending March 12, according to HSH.com:
Conforming 30-year fixed-rate mortgage
Average rate: 3.73 percent
Average points: 0.27
Conforming 5/1-year adjustable-rate mortgage
Average rate: 2.72 percent
Average points: 0.19
Average mortgage rates and points for conforming residential mortgages for the previous week ending March 5 were, 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
