Rates on the most popular types of mortgages held mostly firm according to HSH.com's Weekly Mortgage Rates Radar. The average rate for conforming 30-year fixed-rate mortgages rose by four basis points (0.04 percent) to 4.50 percent. Conforming 5/1 Hybrid ARM rates were unchanged, closing the Wednesday-to-Tuesday wraparound weekly survey at an average of 3.38 percent.
"Awaiting clear economic signals or direction from the Federal Reserve, mortgage rates are rather aimless at the moment," said Keith Gumbinger, vice president of HSH.com. "The ending of the Fed meeting today will probably not provide much new information about how quickly the end will come for the Fed's Quantitative Easing program, but there is plenty of fresh data which might kick them in one direction or the other."
The report covering Gross Domestic Product today and, especially, the July employment report on Friday are important, notes Gumbinger.
“If the economy has slowed, as is expected, the argument to start trimming QE purchases of mortgage-backed securities and Treasury bonds in September is weakened," said Gumbinger. "However, as the Fed's chief concern is the health of the job market, an employment report that shows stronger hiring or a reduction in the unemployment rate would lean in favor of reduced buying sooner than later. As such, a strong report would likely push mortgage rates somewhat higher, probably back toward the two-year highs of a few weeks ago."
Average mortgage rates and points for conforming residential mortgages for the week ending July 30, according to HSH.com:
Conforming 30-year fixed-rate mortgage
Average rate: 4.50 percent
Average points: 0.19
Conforming 5/1-year adjustable-rate mortgage
Average rate: 3.38 percent
Average points: 0.16
Average mortgage rates and points for conforming residential mortgages for the previous week ending July 23 were, according to HSH.com:
Conforming 30-year fixed-rate mortgage
Average Rate: 4.46 percent
Average Points: 0.20
Conforming 5/1-year adjustable-rate mortgage
Average Rate: 3.38 percent
Average Points: 0.18
