Rates on the most popular types of mortgages shifted slightly in opposite directions but remained trendless, according to HSH.com's Weekly Mortgage Rates Radar. The average rate for conforming 30-year fixed-rate mortgages fell by three basis points (0.03 percent) to 4.18 percent. Conforming 5/1 Hybrid ARM rates increased by a single basis point, closing the Wednesday-to-Tuesday wraparound weekly survey at an average of 3.16 percent.
"Mortgage rates continue to hold nearly steady with no place to go," said Keith Gumbinger, vice president of HSH.com. "There are as many forces pressing them down as there are propping them up, as has been the case since mid-May. There's nothing wrong with a flat pattern for rates at these low levels, especially if it helps to encourage summer homebuyers."
Home sales could use a lift, too. While sales of existing homes have found a little traction this spring, the latest report on pending home sales from the National Association of Realtors suggests that things are softening up again, while sales of new homes have been quite soft at just a 406,000 annualized rate in June.
"Low mortgage rates are an important support for homebuyers, but by no means the key," adds Gumbinger. "Potential buyers need good credit, a down payment and reserves to begin with, but also need viable and desirable homes to buy at price they are willing - or can afford - to pay, and they need a certain level of confidence about both current and future prospects before they can or will jump in. Unfortunately, there are lots of potential homebuyers missing one or more of these elements who can't participate in the market, no matter how favorable mortgage rates are."
Average mortgage rates and points for conforming residential mortgages for the week ending July 29, according to HSH.com:
Conforming 30-year fixed-rate mortgage
►Average rate: 4.18 percent
►Average points: 0.18
Conforming 5/1-year adjustable-rate mortgage
►Average rate: 3.16 percent
►Average points: 0.06
Average mortgage rates and points for conforming residential mortgages for the previous week ending July 22 were, according to HSH.com:
Conforming 30-year fixed-rate mortgage
►Average Rate: 4.21 percent
►Average Points: 0.19
Conforming 5/1-year adjustable-rate mortgage
►Average Rate: 3.15 percent
►Average Points: 0.10
