Rates on the most popular mortgages types drifted downward again, according to HSH.com's Weekly Mortgage Rates Radar. The average rate for conforming 30-year fixed-rate mortgages fell by two basis points (0.02 percent) to 3.54 percent. Conforming 5/1 Hybrid ARM rates decreased by a single basis point, closing the Wednesday-to-Tuesday wraparound weekly survey at average of 2.59 percent.
"Fixed mortgage rates are a stone's throw from record lows, while five-one hybrid ARMs are already there," said Keith Gumbinger, vice president of HSH.com. "There's no better way to welcome the spring homebuying season than with rock-bottom mortgage rates."
Sales of both new and existing homes are holding near multi-year highs, but inventories of homes available for sale remains tight. That may cause frustration for some potential homebuyers, since it represents a sea change from just a couple of years ago.
"Driven by low rates, there are more buyers in the market now but not much inventory available. Any so-called 'shadow inventory', properties expected to flood the market when sales conditions improved doesn't appear to be turning into real inventory very quickly. Also, some sellers may be holding out for higher prices before putting their homes on the market this spring. Whatever the reason, additional home sales are said to be held back for a lack of desirable inventory," adds Gumbinger.
Average mortgage rates and points for conforming residential mortgages for the week ending April 23, according toHSH.com:
Conforming 30-year fixed-rate mortgage
► Average rate: 3.54 percent
► Average points: 0.25
Conforming 5/1-year adjustable-rate mortgage
► Average rate: 2.59 percent
► Average points: 0.18
Average mortgage rates and points for conforming residential mortgages for the previous week ending April 16 were, according to HSH.com:
Conforming 30-year fixed-rate mortgage
► Average Rate: 3.56 percent
► Average Points: 0.29
Conforming 5/1-year adjustable-rate mortgage
► Average Rate: 2.60 percent
► Average Points: 0.21
