Rates on the most popular types of mortgages eased lower according to HSH.com's Weekly Mortgage Rates Radar. The average rate for conforming 30-year fixed-rate mortgages fell by four basis points (0.04 percent) to 3.68 percent. Conforming 5/1 Hybrid ARM rates decreased by two basis points, closing the Wednesday-to-Tuesday wraparound weekly survey at an average of 2.65 percent.
"With a mixed bag of economic news lately, mortgage rates have found a little space to fall," said Keith Gumbinger, vice president of HSH.com. "It's not fully clear yet if the economy is losing some momentum from the changes to tax policy back in January and the effects of curtailed government spending as a result of the sequestration, but this does appear to be the case at the moment."
One signal that could help provide clarity is the March employment report, due out on Friday. "If the job market continues to solidify, the slowness we're seeing lately will probably be little more than a temporary deceleration," notes Gumbinger. "However, if hiring has slowed in March relative to the last few months, we could be in for a tepid economic period as the spring unfolds."
Average mortgage rates and points for conforming residential mortgages for the week ending April 2, according to HSH.com:
Conforming 30-year fixed-rate mortgage
► Average rate: 3.68 percent
► Average points: 0.25
Conforming 5/1-year adjustable-rate mortgage
► Average rate: 2.65 percent
► Average points: 0.20
Average mortgage rates and points for conforming residential mortgages for the previous week ending March 26 were, according to HSH.com:
Conforming 30-year fixed-rate mortgage
► Average Rate: 3.72 percent
► Average Points: 0.25
Conforming 5/1-year adjustable-rate mortgage
► Average Rate: 2.67 percent
► Average Points: 0.19
