HSH.com: Fixed-Rates Set New Low for the Year

Rates on the most popular types of mortgages were lower overall to start September, according to HSH.com's Weekly Mortgage Rates Radar. The average rate for conforming 30-year fixed-rate mortgages fell by four basis points (0.04 percent) to 4.15 percent. Conforming 5/1 Hybrid ARM rates remained unchanged for a third-straight week, again closing the Wednesday-to-Tuesdaywraparound weekly survey at an average of 3.14 percent. "The story for mortgage rates remains much the same," said Keith Gumbinger, vice president of HSH.com. "Solid economic growth in the U.S. firms up mortgage and other interest rates, then concerns about growth, deflation and armed skirmishes around the globe find investors rushing to the safety and stability of Treasuries. As that money comes in, bond prices rise and yields fall, pulling mortgage rates down along with them." Fixed mortgage rates are well below where they began the year, sliding by nearly a half percentage point over that time, giving a surprise gift to potential homebuyers and even allowing a few more homeowners to refinance. Mortgage rates have been holding steady since May, and the reasons for this pattern are discussed in more detail in HSH.com's Balancing Act For Mortgage Rates. "Troubles around the world continue to be a mortgage shopper's best friend," said Gumbinger. "Without them, mortgage rates would be rather higher than they are now, and with the economy seeming to strengthen and a Federal Reserve committed to getting out of the mortgage market, we would likely be poised for more increases as we close the year. However, that's not the case, and great mortgage rates remain available to those who can successfully clear the hurdles to getting one." Average mortgage rates and points for conforming residential mortgages for the week ending Sept. 2, according to HSH.com: Conforming 30-year fixed-rate mortgage ►Average rate: 4.15 percent ►Average points: 0.17 Conforming 5/1-year adjustable-rate mortgage ►Average rate: 3.14 percent ►Average points: 0.07 Average mortgage rates and points for conforming residential mortgages for the previous week ending Aug. 26 were, 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: 3.14 percent ►Average points: 0.09