Rates on the most popular types of mortgages moved in slightly different directions, with a drop for fixed rates and a slight climb for ARMs, according to HSH.com's Weekly Mortgage Rates Radar. The average rate for conforming 30-year fixed-rate mortgages fell by three basis points (0.03 percent) to 3.51 percent. Conforming 5/1 Hybrid ARM rates increased by two basis points, closing the Wednesday-to-Tuesday wraparound weekly survey at an average of 2.61 percent.
"Compared with the last quarter of 2012, the economy grew at a faster rate in the first quarter of 2013, but only at a muted pace, and with a decidedly soft end in March. Since then, there have been few signs of improvement, so mortgage rates remain in a flat-to-falling pattern,” said Keith Gumbinger, vice president of HSH.com. "The Federal Reserve finishes their regular policy meeting today, and it seems likely that policies to keep both interest rates and mortgage rates low will remain fully in place for the foreseeable future."
When the economy seemed stronger earlier this year, discussions began to take place at the Fed as to when and how to remove "policy accommodation," occurring presently in the form of outright purchases of Treasury bonds and mortgage-backed securities and collectively known as QE3.
"There was a chance that the Fed would start to taper their purchases of Treasuries or MBS as summer approached," added Gumbinger. "But that is starting to look less the case, given the still-soft state of the economy. Odds favor that the programs will continue until much later in the year, so mortgage rates should continue to be available at fantastic rates."
Average mortgage rates and points for conforming residential mortgages for the week ending April 30, according toHSH.com:
Conforming 30-year fixed-rate mortgage
► Average rate: 3.51 percent
► Average points: 0.23
Conforming 5/1-year adjustable-rate mortgage
► Average rate: 2.61 percent
► Average points: 0.18
Average mortgage rates and points for conforming residential mortgages for the previous week ending April 23 were, according to HSH.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
