Rates on the most popular types of mortgages took divergent paths this week according to HSH.com's Weekly Mortgage Rates Radar. The average rate for conforming 30-year fixed-rate mortgages rose by two basis points (0.02 percent) to 3.53 percent. Conforming 5/1 Hybrid ARM rates decreased by four basis points, closing the Wednesday-to-Tuesday wraparound weekly survey at an average of 2.57 percent.
"After a pretty solid report on hiring in March, and a decline in the unemployment rate to 7.5 percent, fixed rate mortgages broke a six-week slide," said Keith Gumbinger, vice president of HSH.com. "Although some firming of fixed rates will continue this week, we will remain very near record lows, and certainly well within 2013 ranges."
The latest Federal Reserve survey of Senior Loan Officers noted that lending conditions for mortgage borrowers eased slightly in the first quarter of 2013. Some of that modest easing may be reflected in more aggressive pricing for ARMs, which continued their own downward trend this week, pressing deeper into record low territory.
"Although few ARMs are being originated at the moment, lenders tend to keep them on their books, so they retain full control over the price and terms of the product", adds Gumbinger. "Within reason, this allows lenders to price products at very competitive rates. At today's rates, and for certain borrowers, a 5/1 ARM may be a very good choice."
Average mortgage rates and points for conforming residential mortgages for the week ending May 07, according to HSH.com:
Conforming 30-year fixed-rate mortgage
► Average rate: 3.53 percent
► Average points: 0.21
Conforming 5/1-year adjustable-rate mortgage
► Average rate: 2.57 percent
► Average points: 0.17
Average mortgage rates and points for conforming residential mortgages for the previous week ending April 30 were, according to HSH.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
