Rates on the most popular types of mortgages eased just a little, according to HSH.com's Weekly Mortgage Rates Radar. The average rate for conforming 30-year fixed-rate mortgages fell by two basis points (0.02 percent) to 4.22 percent. Conforming 5/1 Hybrid ARM rates also decreased by two basis points, closing the Wednesday-to-Tuesday wraparound weekly survey at an average of 3.16 percent.
"A growing domestic economy is pressing rates upward, but trouble outside the U.S. is pushing them right back down again," said Keith Gumbinger, vice president of HSH.com. "That's been the case a number of times during the spring, and it looks like this will continue now that summer is here. Although rates aren't low enough to foster much refinancing activity, homebuyers are seeing an excellent chance to grab a relatively inexpensive mortgage."
According to the latest reports, more homebuyers entered the market in late spring. Existing home sales rose by about five percent in May, while sales of new homes leapt by about 19 percent to an annualized pace last seen in 2008. With rate declines throughout much of the spring, housing affordability improved somewhat as falling mortgage rates helped to offset still-rising home prices.
"Home shoppers responded to news of lower rates this spring, and as long as the economy continues to simmer along, we should see this continue well into the summer," adds Gumbinger. "At some point, rates will begin to rise along with growth and inflation, but for the moment, rates remain in a sweet spot for mortgage seekers overall."
HSH.com also releases this week its new Two-Month Forecast for mortgage rates, providing an outlook on rates for summer mortgage shoppers.
Average mortgage rates and points for conforming residential mortgages for the week ending June 24, according to HSH.com:
Conforming 30-year fixed-rate mortgage
►Average rate: 4.22 percent
►Average points: 0.16
Conforming 5/1-year adjustable-rate mortgage
►Average rate: 3.16 percent
►Average points: 0.08
Average mortgage rates and points for conforming residential mortgages for the previous week ending June 17 were, according to HSH.com:
Conforming 30-year fixed-rate mortgage
►Average Rate: 4.24 percent
►Average Points: 0.23
Conforming 5/1-year adjustable-rate mortgage
►Average Rate: 3.18 percent
►Average Points: 0.10
