Rates on the most popular types of mortgages held steady this week, according to HSH.com's Weekly Mortgage Rates Radar. The average rate for conforming 30-year fixed-rate mortgages rose by three basis points (0.03 percent) to 4.53 percent. Conforming 5/1 Hybrid ARM rates decreased by a single basis point, closing the Wednesday-to-Tuesday wraparound weekly survey at an average of 3.37 percent.
"Mortgage rates are holding pretty stable as markets await new signals about the economy and Fed policy," said Keith Gumbinger, vice president of HSH.com. "In fact, this week's change in the average 30-year fixed rate mortgage was the smallest weekly move in almost two months."
The Federal Reserve would like to begin winding down QE3, the central bank's latest Quantatative Easing program of purchasing mortgage-backed securities and Treasury bonds, perhaps as soon as September. However, economic growth remains "modest", according to the Fed, and it's not yet clear that a reduction in support for the economy is warranted.
"Data scheduled for release over the next several weeks will be key," added Gumbinger. "With mortgage and other interest rates holding near their highest levels of the year, we'll start to see if housing activity has slowed, or by how much, and discover if the Fed makes a change. At the moment, despite a soft economy, it looks as though it will, but time will tell."
Average mortgage rates and points for conforming residential mortgages for the week ending August 6, according to HSH.com:
Conforming 30-year fixed-rate mortgage
Average rate: 4.53 percent
Average points: 0.15
Conforming 5/1-year adjustable-rate mortgage
Average rate: 3.37 percent
Average points: 0.12
Average mortgage rates and points for conforming residential mortgages for the previous week ending July 30 were, 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
