Rates on the most popular types of mortgages backed down this week according to HSH.com's Weekly Mortgage Rates Radar. The average rate for conforming 30-year fixed-rate mortgages fell by six basis points (0.06 percent) to 4.37 percent. Conforming 5/1 Hybrid ARM rates decreased by four basis points, closing the Wednesday-to-Tuesday wraparound weekly survey at an average of 3.08 percent.
"A stumbling economy along with global troubles continues to be a beneficial force for mortgage shoppers," said Keith Gumbinger, vice president of HSH.com. "For the moment, mortgage rates are holding nearer to 2014 lows than highs. As the effects of winter weather begin to wear off, and if a peaceful solution can be found to quell the unrest in the Ukraine, mortgage rates can be expected to firm up again."
At least a portion of the mortgage rate outlook as we approach the spring home buying season hinges upon the February employment report, due out on Friday. If job growth has not picked up from a December and January slump, the economy is likely to grind ahead, and so the Federal Reserve might consider maintaining rate-lowering QE purchases or Treasuries and Mortgage-Backed Securities (MBS) for a while longer.
"Over the next few weeks, we should start to see whether it was winter weather or something else holding the economy back," adds Gumbinger. "If weather was the reason, we will see some firming in mortgage rates as the impact of cold and snow fades. However, if there are more fundamental issues at work, rates are more likely to continue to wander sideways at or about present levels."
Average mortgage rates and points for conforming residential mortgages for the week ending March 4, according to HSH.com:
Conforming 30-year fixed-rate mortgage
►Average rate: 4.37 percent
►Average points: 0.13
Conforming 5/1-year adjustable-rate mortgage
►Average rate: 3.08 percent
►Average points: 0.09
Average mortgage rates and points for conforming residential mortgages for the previous week ending February 25 were, according to HSH.com:
Conforming 30-year fixed-rate mortgage
►Average rate: 4.43 percent
►Average points: 0.18
Conforming 5/1-year adjustable-rate mortgage
►Average rate: 3.12 percent
►Average points: 0.09
