Rates on the most popular types of mortgages declined again, according to HSH.com's Weekly Mortgage Rates Radar. The average rate for conforming 30-year fixed-rate mortgages fell by five basis points (0.05 percent) to 4.17 percent. Conforming 5/1 Hybrid ARM rates also decreased by five basis points, closing the Wednesday-to-Tuesday wraparound weekly survey at an average 3.11 percent.
"Mortgage rates continue to surprise the markets, not only by falling for much of the first half of the year, but also by remaining low," said Keith Gumbinger, vice president of HSH.com. "This is more remarkable with the economy coming back up to speed and a bit more inflation pressure than we've seen for a while."
A growing economy's demands for credit can help lift interest rates, as can any widespread price pressures. While both seem to be heading upward, neither are at a place where there is great concern as yet, and the recent trends for these may or may not be sustained, given the ups and downs seen in this economic recovery. Low mortgage rates have had a broadly beneficial effect on housing markets, with this spring's unexpected fall fostering an increase in home sales.
"Homebuyers have been presented with a great opportunity this spring, and the latest reports show they are taking full advantage, lifting existing home sales by almost five percent in May and also driving sales of new homes up by nearly 19 percent," adds Gumbinger. "With no way to know how long rates will remain low, homebuyers are seizing their chances at near-record low rates as quickly as they can."
Average mortgage rates and points for conforming residential mortgages for the week ending July 01, according to HSH.com:
Conforming 30-year fixed-rate mortgage
►Average rate: 4.17 percent
►Average points: 0.18
Conforming 5/1-year adjustable-rate mortgage
►Average rate: 3.11 percent
►Average points: 0.07
Average mortgage rates and points for conforming residential mortgages for the previous week ending June 24 were, 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
