Rates on the most popular types of mortgages declined for a second consecutive week according to HSH.com's Weekly Mortgage Rates Radar. The average rate for conforming 30-year fixed-rate mortgages (FRMs) fell by five basis points (0.05 percent) to 4.19 percent. Conforming 5/1 Hybrid ARM rates decreased by one basis point, closing the Wednesday-to-Tuesday wraparound weekly survey at an average of 3.22 percent.
"The latest economic data suggest that the economy is performing well, although perhaps with not as much strength as we saw in the second quarter of 2014," said Keith Gumbinger, vice president of HSH.com. "Despite the good news, stock markets have been wobbly, and investors continue to seek reassuring places to park cash, so bond yields and mortgage rates have declined a bit in recent days."
After the second quarter managed a 4.6 percent rate of growth, indications are that we'll likely see a deceleration to a rate in the low-to-mid three percent range for the third quarter. That's still a healthy clip, and with hiring up and unemployment declining, the prospects for a continuing solid economic pace are improving.
"Firm growth is often accompanied by rising inflation and increases in interest rates, but at the moment, price pressures aren't a concern," said Gumbinger. "We also have the Federal Reserve working to keep mortgage rates low for at least a while yet, but as their Quantitative Easing (QE) program comes to a close at month's end, we expect to see rates remain low but become somewhat more volatile. For now, low and stable mortgage rates remain in place."
Average mortgage rates and points for conforming residential mortgages for the week ending Oct. 7, according to HSH.com:
Conforming 30-year fixed-rate mortgage
►Average rate: 4.19 percent
►Average points: 0.16
Conforming 5/1-year adjustable-rate mortgage
►Average rate: 3.22 percent
►Average points: 0.12
Average mortgage rates and points for conforming residential mortgages for the previous week ending Sept. 30 were, according to HSH.com:
Conforming 30-year fixed-rate mortgage
►Average rate: 4.24 percent
►Average points: 0.14
Conforming 5/1-year adjustable-rate mortgage
►Average rate: 3.23 percent
►Average points: 0.08
