Rates on the most popular types of mortgages rose slightly, according to HSH.com's Weekly Mortgage Rates Radar. The average rate for conforming 30-year fixed-rate mortgages rose by six basis points (0.06 percent) to 4.24 percent. Conforming 5/1 Hybrid ARM rates increased by two basis points, closing the Wednesday-to-Tuesday wraparound weekly survey at an average of 3.18 percent.
"The statement released at the close of the Federal Reserve meeting last week was more upbeat than previous assessments of the economy," said Keith Gumbinger, vice president of HSH.com. "The Fed noted that the labor market was improving and that inflation had edged higher, too. As changes to interest rate policy will be dictated by how quickly the economy develops reliable traction, markets flinched a little bit on the news. However, we have started to settle back after the uptick, which barely moved mortgage rates off recent bottoms."
Mortgage rates have been range bound for several months despite the economy's improving fortune. While low rates are important for housing, access to credit is perhaps more crucial, and the latest news in that regard is encouraging.
"Low mortgage rates are always welcome," adds Gumbinger. "But if a borrower can't meet the qualifications to get a mortgage, they mean little. The Fed's survey of Senior Loan Officers for the third quarter showed that tight mortgage underwriting standards have eased measurably, so marginal mortgage shoppers will be likely to succeed in their transaction, whether they are refinancing an existing mortgage or buying a home. This combination of low rates and improving access to credit is good news all around."
Average mortgage rates and points for conforming residential mortgages for the week ending August 05, 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
Average mortgage rates and points for conforming residential mortgages for the previous week ending July 29 were, according to HSH.com:
Conforming 30-year fixed-rate mortgage
►Average Rate: 4.18 percent
►Average Points: 0.18
Conforming 5/1-year adjustable-rate mortgage
►Average Rate: 3.16 percent
►Average Points: 0.06
