Rates on the most popular types of mortgages ebbed slightly lower this week 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 4.21 percent. Conforming 5/1 Hybrid ARM rates decreased] by three basis points, closing the Wednesday-to-Tuesday wraparound weekly survey at an average of 3.15 percent.
"Mortgage rates continue to bob about like a raft on the ocean," said Keith Gumbinger, vice president of HSH.com. "One week we'll see a small upward swell, only to find rates ebb lower the following week. At some point, we're likely to break out of this pattern, probably upward, but for now the 'summer of stability' for mortgage rates continues."
Mortgage rates have held to a tight range since mid to late May, wobbling gently over that time. Opposing economic and political forces have served to produce the near-stasis at very favorable levels, and this beneficial happenstance may result in the easing of lending standards for at least some borrowers.
"The latest Federal Reserve survey of Senior Loan Officers should provide a little encouragement for mortgage shoppers, as the report noted some banks have begun easing tight underwriting guidelines," said Gumbinger. "While these changes are only at the fringes for now, that the so-called 'credit box' is beginning to expand can mean more and better opportunities for mortgage borrowers to get a crack at these low mortgage rates before they eventually disappear."
Average mortgage rates and points for conforming residential mortgages for the week ending August 12, according to HSH.com:
Conforming 30-year fixed-rate mortgage
►Average rate: 4.21 percent
►Average points: 0.18
Conforming 5/1-year adjustable-rate mortgage
►Average rate: 3.15 percent
►Average points: 0.10
Average mortgage rates and points for conforming residential mortgages for the previous week ending August 05 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: 3.18 percent
►Average Points: 0.07
