Rates on the most popular types of mortgages climbed slightly upward according to HSH.com's Weekly Mortgage Rates Radar. The average rate for conforming 30-year fixed-rate mortgages rose by five basis points (0.05 percent) to 4.66 percent. Conforming 5/1 Hybrid ARM rates increased by six basis points, closing the Wednesday-to-Tuesday wraparound weekly survey at an average of 3.47 percent.
"After a strong bounce last week, mortgage rates are stabilizing at the moment," said Keith Gumbinger, vice president of HSH.com. "Last Friday's report, which showed a 13.4 percent decline in new home sales for July, is our first indication that higher mortgage rates are having an effect on the housing market. If housing is slowing, the Federal Reserve's expected process of 'tapering' QE may become a more protracted process, or begin later than mid-September."
Stock markets have been unsteady of late, given the unfolding situation in Syria and across the Middle East, which has added uncertainty about any political or military moves which may be implemented.
"Troubles in the world can be a mortgage borrower's best friend," said Gumbinger. "Worried investors often park cash in U.S. Treasuries as a safe haven, driving yields down and dragging mortgage rates along with them. So far, this action by investors has been enough to slow last week's rise; should it persist, mortgage rates may actually be lower later this week."
Average mortgage rates and points for conforming residential mortgages for the week ending Aug. 27, according to HSH.com:
Conforming 30-year fixed-rate mortgage
►Average rate: 4.66 percent
►Average points: 0.20
Conforming 5/1-year adjustable-rate mortgage
►Average rate: 3.47 percent
►Average points: 0.16
Average mortgage rates and points for conforming residential mortgages for the previous week ending Aug. 20 were, according to HSH.com:
Conforming 30-year fixed-rate mortgage
►Average Rate: 4.61 percent
►Average Points: 0.21
Conforming 5/1-year adjustable-rate mortgage
►Average Rate: 3.41 percent
►Average Points: 0.17
