Rates on the most popular types of mortgages were mixed this week, according to HSH.com's Weekly Mortgage Rates Radar. The average rate for conforming 30-year fixed-rate mortgages (FRMs) rose by three basis points (0.03 percent) to 4.28 percent. Conforming 5/1 Hybrid ARM rates decreased by two basis points, closing the Wednesday-to-Tuesday wraparound weekly survey at an average of 3.22 percent.
"The small multi-week rise for mortgage rates seems to have run out of steam for now," said Keith Gumbinger, vice president of HSH.com. "Rates climbed from the lowest levels of 2014 over the past few weeks, increasing by about an eighth of a percentage point, perhaps discouraging a few potential refinances but hardly enough to make much of a difference to prospective homebuyers."
Mortgage and other interest rates had been expected to be on the rise this year, but a confluence of events prevented that from occurring. However, with a fairly solid economy and the pending end of the Fed's program to keep rates low, it is likely that at least some minor increase in mortgage rates can be expected during the fall.
"At the end of its most recent meeting, the Federal Reserve laid out plans for managing interest rate policy, so we now know how they will do it, if not exactly when,” said Gumbinger. “The Fed's own expectation is that it will begin lifting short-term rates in early- to mid-2015, but that may change if the economy allows it. Long-term mortgage and other interest rates aren't immune to the Fed's influence, so we may be in for a more volatile period for mortgage rates once QE [Quantitative Easing] comes to an end next month."
Average mortgage rates and points for conforming residential mortgages for the week ending September 23, according to HSH.com:
Conforming 30-year fixed-rate mortgage
►Average rate: 4.28 percent
►Average points: 0.16
Conforming 5/1-year adjustable-rate mortgage
►Average rate: 3.22 percent
►Average points: 0.08
Average mortgage rates and points for conforming residential mortgages for the previous week ending Sept. 16 were, according to HSH.com:
Conforming 30-year fixed-rate mortgage
►Average rate: 4.25 percent
►Average points: 0.20
Conforming 5/1-year adjustable-rate mortgage
►Average rate: 3.24 percent
►Average points: 0.10
