Rates on the most popular types of mortgages pushed higher again, 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 4.68 percent. Conforming 5/1 Hybrid ARM rates increased by four basis points, closing the Wednesday-to-Tuesday wraparound weekly survey at an average of 3.50 percent.
"Mortgage rates are fluctuating in a seesaw pattern even as they continue to slowly rise," said Keith Gumbinger, vice president of HSH.com. "Mortgage rates are back to levels last seen in spring 2011, but have been holding in a fairly narrow range over the past four weeks."
Stock, bond and mortgage markets have been searching for clues as to where the economy is going, and as to what the Federal Reserve will do with regard to its programs of accumulating mortgage-backed securities (MBS) and Treasury bonds. With the most recent economic data somewhat warmer in tone but not universally strong, it's by no means clear where they are going or how fast we will go there.
"The Federal Reserve meets next week to sort it all out," added Gumbinger. "Odds are good that they will begin to 'taper' purchases of MBS and Treasuries, but probably only by a small amount, perhaps $5 billion, to start. If markets should react favorably, they will probably continue along this modest path during the fall, possibly reducing purchases somewhat more quickly if the economy warrants and markets continue to behave."
Average mortgage rates and points for conforming residential mortgages for the week ending September 10, according to HSH.com:
Conforming 30-year fixed-rate mortgage
►Average rate: 4.68 percent
►Average points: 0.21
Conforming 5/1-year adjustable-rate mortgage
►Average rate: 3.50 percent
►Average points: 0.13
Average mortgage rates and points for conforming residential mortgages for the previous week ending September 03 were, according to HSH.com:
Conforming 30-year fixed-rate mortgage
►Average Rate: 4.63 percent
►Average Points: 0.18
Conforming 5/1-year adjustable-rate mortgage
►Average Rate: 3.46 percent
►Average Points: 0.13
