Rates on the most popular types of mortgages moved down notably this week, according to HSH.com's Weekly Mortgage Rates Radar. The average rate for conforming 30-year fixed-rate mortgages fell by eight basis points (0.08 percent) to 4.53 percent. Conforming 5/1 Hybrid ARM rates decreased by seven basis points, closing the Wednesday-to-Tuesday wraparound weekly survey at an average of 3.26 percent.
"Just as the economy was performing reliably, even gaining momentum, a report came that took some of the wind out of the sails," said Keith Gumbinger, vice president of HSH.com. "The soft employment report for December is a bit of a two-edged sword, as it brings lower mortgage rates to homeowners looking to refinance and homebuyers looking to get deals in place, but comes at the expense of the broader economy, especially people looking for a job."
About 1.3 million Americans saw their unemployment benefits expire at the end of December, so the weak pace of hiring seems even more painful. With new mortgage rules in place, borrowers usually need at least two years' worth of income documentation to be able to qualify for a mortgage, and bouts of unemployment and periods with no income make it that much more difficult for people hoping to buy or refinance a home sometime soon.
"Low mortgage rates are little more than an attractive nuisance if you can't qualify for a loan," notes Gumbinger. "Here's hoping that the dip in new hiring turns out to be just a blip in an otherwise fair pattern, or we may not see the kind of housing market in 2014 we are hoping to see."
Average mortgage rates and points for conforming residential mortgages for the week ending Jan. 14, according to HSH.com:
Conforming 30-year fixed-rate mortgage
►Average rate: 4.53 percent
►Average points: 0.18
Conforming 5/1-year adjustable-rate mortgage
►Average rate: 3.26 percent
►Average points: 0.13
Average mortgage rates and points for conforming residential mortgages for the previous week ending January 07 were, according to HSH.com:
Conforming 30-year fixed-rate mortgage
►Average Rate: 4.61 percent
►Average Points: 0.19
Conforming 5/1-year adjustable-rate mortgage
►Average Rate: 3.33 percent
►Average Points: 0.11
