Rates on the most popular types of mortgages moved upward, according to HSH.com's Weekly Mortgage Rates Radar. The average rate for conforming 30-year fixed-rate mortgages rose by seven basis points (0.07 percent) to 3.68 percent. Conforming 5/1 Hybrid ARM rates increased by three basis points, closing the Wednesday-to-Tuesday wraparound weekly survey at an average of 2.62 percent.
"After reaching lows for the year just four weeks ago, and despite plenty of mixed economic signals, 30-year fixed mortgage rates have quickly moved back to near this year’s highs," said Keith Gumbinger, vice president of HSH.com. "Rising stock markets, with their promise of better returns, continue to draw investor money out of safe-haven investments such as bonds. Yields are increasing as a result, pulling mortgage rates along with them."
Gumbinger adds "Even with upward and downward moves this year, mortgage rates remain near record lows, and that can be expected to continue until we get reliably solid growth, inflation begins to appear or the Fed begins tapering its support. None of those conditions seems imminent."
Average mortgage rates and points for conforming residential mortgages for the week ending May 21, according to HSH.com:
Conforming 30-year fixed-rate mortgage
Average rate: 3.68 percent
Average points: 0.27
Conforming 5/1-year adjustable-rate mortgage
Average rate: 2.62 percent
Average points: 0.20
Average mortgage rates and points for conforming residential mortgages for the previous week ending May 14 were, according to HSH.com:
Conforming 30-year fixed-rate mortgage
Average Rate: 3.61 percent
Average Points: 0.26
Conforming 5/1-year adjustable-rate mortgage
Average Rate: 2.59 percent
Average Points: 0.19
