HSH.com: Fixed-Rates See Weekly Drop to 4.38 Percent

Rates on the most popular types of mortgages declined again according to HSH.com's Weekly Mortgage Rates Radar. The average rate for conforming 30-year fixed-rate mortgages fell by eleven basis points (0.11 percent) to 4.38 percent. Conforming 5/1 Hybrid ARM rates decreased by only four basis points, closing the Wednesday-to-Tuesday wraparound weekly survey at an average 3.27 percent. "Mortgage rates have slipped to levels not seen in a few months," said Keith Gumbinger, vice president of HSH.com. "While this is great news for mortgage shoppers, what's not great is that it comes as the government has ground to a halt, making it hard for mortgage lenders to get verification of tax returns or even Social Security numbers. This is likely to slow the loan approval process." Borrowers involved in the mortgage process should discuss timelines and expectations with their lender, and inquire about longer commitments, longer rate locks and extension policies for each. "If the government shutdown is only for a few days, it should be minimally disruptive," adds Gumbinger. "Most loans are closed toward the end of the month, so a few days delay in getting documentation shouldn't derail too many deals. However, if it persists for several weeks, disruptions and backlogs are likely to multiply." Average mortgage rates and points for conforming residential mortgages for the week ending October 1, according to HSH.com: Conforming 30-year fixed-rate mortgage Average rate:   4.38 percent Average points: 0.17 Conforming 5/1-year adjustable-rate mortgage Average rate:   3.27 percent Average points: 0.12 Average mortgage rates and points for conforming residential mortgages for the previous week ending September 24 were, according to HSH.com: Conforming 30-year fixed-rate mortgage Average Rate:   4.49 percent Average Points: 0.20 Conforming 5/1-year adjustable-rate mortgage Average Rate:   3.31 percent Average Points: 0.12