According to HSH.com's Weekly Mortgage Rates Radar, interest rates for the most popular types of mortgages moved a little higher this week. The average rate for conforming 30-year fixed-rate mortgages rose by six basis points (0.06 percent) to 4.23 percent. Conforming 5/1 Hybrid ARM rates increased by seven basis points, closing the Wednesday-to-Tuesday wraparound weekly survey at an average of 3.18 percent.
"The drumbeat of solid economic news continues, and will eventually have a more pronounced effect on mortgage rates," said Keith Gumbinger, vice president of HSH.com. "For the moment, it is sufficient to lift us off of recent lows, but not enough to break out of the low range of the last two months."
June's employment report was the latest to join a litany of solid news. Some 288,000 new jobs were created during the month, and this report was accompanied by upward revisions to prior months, further improving the labor market picture. The nation's unemployment rate eased to 6.1 percent and with more people finding more jobs, the recovery should have space to continue to strengthen in the months ahead.
"We continue to be in a sweet spot for mortgage rates," adds Gumbinger. "We have the Fed still influencing the market. The economy is growing, but inflation remains tame. Rates are not only lower than expected, but have also been pretty stable, inspiring confidence in potential homebuyers that the mortgage rate they need will be available when it comes time to sign on the dotted line."
Average mortgage rates and points for conforming residential mortgages for the week ending July 8, according to HSH.com:
Conforming 30-year fixed-rate mortgage
►Average rate: 4.23 percent
►Average points: 0.20
Conforming 5/1-year adjustable-rate mortgage
►Average rate: 3.18 percent
►Average points: 0.10
Average mortgage rates and points for conforming residential mortgages for the previous week ending July 1st were, 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
