Rates on the most popular types of mortgages slipped a little according to HSH.com's Weekly Mortgage Rates Radar. The average rate for conforming 30-year fixed-rate mortgages fell by four basis points (0.04 percent) to 4.49 percent. Conforming 5/1 Hybrid ARM rates decreased by three basis points, closing the Wednesday-to-Tuesday wraparound weekly survey at an average of 3.34 percent.
"Mortgage rates have been holding fairly flat for the last four weeks now, which is not a bad thing given the strong upward moves of the spring and early summer," said Keith Gumbinger, vice president of HSH.com. "Such pauses have value, as they allow potential homebuyers a chance to catch up and decide how best to proceed."
Mortgage and bond markets have calmed appreciably since the Fed started discussing its working plans for removing extraordinary economic supports in May, June and July. Markets now await data strong enough to confirm expectations that a change will be coming, or signals from the Fed on the timing of the first move.
"It's a waiting game at the moment," said Gumbinger. "Mortgage rates are wandering upward on stronger data and downward on weaker data, but are likely to hold fairly steady until the path is clearer. Given the mixed nature of the economic news lately, clarity may not come and the road ahead may be murky for some time."
Expectations for mortgage rates over the next couple of months can be seen in HSH.com's new two-month forecast. Average mortgage rates and points for conforming residential mortgages for the week ending August 13, according to HSH.com:
Conforming 30-year fixed-rate mortgage
Average rate: 4.49 percent
Average points: 0.21
Conforming 5/1-year adjustable-rate mortgage
Average rate: 3.34 percent
Average points: 0.14
Average mortgage rates and points for conforming residential mortgages for the previous week ending August 06 were, 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
