Rates on the most popular types of mortgages dipped lower this week, according to HSH.com's Weekly Mortgage Rates Radar. The average rate for conforming 30-year fixed-rate mortgages fell by four basis points (0.04 percent) to 4.27 percent. Conforming 5/1 Hybrid ARM rates decreased by one basis point, closing the Wednesday-to-Tuesday wraparound weekly survey at an average of 3.13 percent.
"We remain treading the same path of moderate growth with no inflation, accompanied by plenty of global concerns,” said Keith Gumbinger, vice president of HSH.com. "Investors continue to look for places to park their cash as they try to discern both opportunities for growth and future Federal Reserve policy, but both appear to be on a smooth plane for the moment."
The dip in interest rates comes during the heart of the spring homebuying season. Borrowers looking for a $200,000 30-year fixed rate mortgage this week will find a monthly payment about $21 lower than they would have paid for the same loan during the first week of April, saving them more than $7,600 over the life of the loan.
"That lower cost mortgages are in the market this spring should provide a little encouragement to both home buyers and sellers alike," added Gumbinger. "If rates should manage to slide a little further, we'll be comparing against year-ago levels, and might see conforming loans make a run at the four-percent mark on average, as FHA-backed loans did this past week."
HSH.com also announces this week a unique new calculator to allow potential homebuyers to determine how to best allocate funds toward a down payment, see the effects on their mortgage insurance costs and find out if they can hold back funds for other purposes without increasing their costs.
Average mortgage rates and points for conforming residential mortgages for the week ending May 13, according to HSH.com:
Conforming 30-year fixed-rate mortgage
►Average rate: 4.27 percent
►Average points: 0.16
Conforming 5/1-year adjustable-rate mortgage
►Average rate: 3.13 percent
►Average points: 0.07
Average mortgage rates and points for conforming residential mortgages for the previous week ending May 06 were, according to HSH.com:
Conforming 30-year fixed-rate mortgage
►Average rate: 4.31 percent
►Average points: 0.15
Conforming 5/1-year adjustable-rate mortgage
►Average rate: 3.14 percent
►Average points: 0.08
