Rates on the most popular types of mortgages held nearly still according to HSH.com's Weekly Mortgage Rates Radar. The average rate for conforming 30-year fixed-rate mortgages rose by a single basis point (0.01 percent) to 4.19 percent. Conforming 5/1 Hybrid ARM rates remained unchanged for the week, holding at an average of 3.14 percent for the period.
"Mortgage rates continue to remain very near 2014 lows," said Keith Gumbinger, vice president of HSH.com. "At the moment, there's not much news that seems capable to moving them greatly one way or the other. While welcome, low mortgage rates have only had a mild stimulative effect on home sales this year, and there doesn't seem to be much forward momentum."
The National Association of Realtors notes that sales of existing homes did manage a 2.4 percent increase in July. However, those sales reflect demand from as long as 60 days ago, as they are recorded at the time the loan closes and the deed changes hands. Despite improving optimism among homebuilders, sales of new homes have been stuck in low gear, sliding by 2.4 percent to a 412,000 pace in July, according to the Census Bureau. These are recorded when the contract to buy has been signed, and so may be more reflective of the current demand for homes.
"It continues to become increasingly clear that the factors keeping home sales from driving the economy forward go beyond the interest rate on a mortgage," adds Gumbinger. "Despite measurable improvements in market conditions over the past couple of years, crisis-era underwriting standards remain in place, increasing costs for some, while others who might want to buy homes remain misaligned with the realities of the marketplace and can't participate at all."
Average mortgage rates and points for conforming residential mortgages for the week ending August 26, 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
Average mortgage rates and points for conforming residential mortgages for the previous week ending August 19 were, according to HSH.com:
Conforming 30-year fixed-rate mortgage
►Average Rate: 4.18 percent
►Average Points: 0.23
Conforming 5/1-year adjustable-rate mortgage
►Average Rate: 3.14 percent
►Average Points: 0.11
