Rates on the most popular types of mortgages fell slightly according to HSH.com's Weekly Mortgage Rates Radar. The average rate for conforming 30-year fixed-rate mortgages declined by three basis points (0.03 percent) to 4.16 percent. Conforming 5/1 Hybrid ARM rates fell by just one basis point, closing the Wednesday-to-Tuesday wraparound weekly survey at an average of 3.06 percent.
"Mortgage rates continue to confound expectations, easing for weeks despite signs of a growing economy," said Keith Gumbinger, vice president of HSH.com. "But as we've seen so far this spring, low mortgage rates alone are insufficient to lift the housing market by much, or at least very quickly."
Sales of both new and existing homes have been tepid this spring as tight underwriting standards, a lack of desirable homes to buy, reduced affordability and other factors continue to keep the housing market from gaining much traction.
"Unlike refinancing, which is primarily interest-rate driven, the purchase of a home involves many more factors aligning," said Gumbinger. "Mortgage rates are certainly a component, but finding a house you love, in a place you want to live, at a price you can afford, with all of the amenities and supports you need to be successful living there is a more complex process. Mortgage rates can go up and be a deterrent to buying or decline and be a stronger draw, but everything else must also come into alignment."
Average mortgage rates and points for conforming residential mortgages for the week ending June 03, according to HSH.com:
Conforming 30-year fixed-rate mortgage
►Average rate: 4.16 percent
►Average points: 0.16
Conforming 5/1-year adjustable-rate mortgage
►Average rate: 3.06 percent
►Average points: 0.07
Average mortgage rates and points for conforming residential mortgages for the previous week ending May 27 were, according to HSH.com:
Conforming 30-year fixed-rate mortgage
►Average rate: 4.19 percent
►Average points: 0.17
Conforming 5/1-year adjustable-rate mortgage
►Average rate: 3.07 percent
►Average points: 0.08
