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Mortgage Rates Radar: Mortgage rates hover at low ground

By   |  Posted in Mortgage Rates Radar

Rates on the most popular types of mortgages held virtually motionless according to HSH.com's Weekly Mortgage Rates Radar. The average rate for conforming 30-year fixed-rate mortgages fell by a single basis point (0.01 percent) to 4.38 percent. Conforming 5/1 Hybrid ARM rates remained unchanged, closing the Wednesday-to-Tuesday wraparound weekly survey at a steady average of 3.16 percent.

Mortgage rates hold near 2014 lows

"Outside of home sales, indicators are pointing to a firming economy, which usually brings higher mortgage rates," said Keith Gumbinger, vice president of HSH.com. "However, with plenty of available money and limited demand for credit, mortgage rates continue to hold near 2014 lows. The lack of demand is easily seen in lower home sales so far this year, but even that may be changing for the better."

After an eight-month skid, the National Association of Realtors reported that pending sales of existing homes rose by 3.4 percent in March, signaling that there should be some pick up in reported sales when those contracts close in the next 60 to 90 days. Despite the increase, pending home sales this March were almost eight percent below last year, when mortgage rates were closing in on 60-year lows for a second time.

Jobs report could shift mortgage rates

"Mortgage rates won't remain immune to an improving economy indefinitely, and will most likely grind higher over time," notes Gumbinger. "However, it may not be a steady process, and a strong economic report may cause flares in rates at times. For example, if Friday's April employment report shows outsized gains in hiring, rates could pop higher and hold as we await evidence to determine if the improvement is durable or fleeting."

Current mortgage rates

Average mortgage rates and points for conforming residential mortgages for the week ending April 29, according to HSH.com:

HSH.com Mortgage Rates Radar - Four Week Trend

Conforming 30-year fixed-rate mortgage

  • Average rate:   4.38 percent
  • Average points: 0.16

Conforming 5/1-year adjustable-rate mortgage

  • Average rate:   3.16 percent
  • Average points: 0.08

Average mortgage rates and points for conforming residential mortgages for the previous week ending April 22 were, according to HSH.com:

Conforming 30-year fixed-rate mortgage

  • Average Rate:   4.39 percent
  • Average Points: 0.15

Conforming 5/1-year adjustable-rate mortgage

  • Average Rate:   3.16 percent
  • Average Points: 0.09

Methodology

The Weekly Mortgage Rates Radar reports the average rates and points offered on conforming 30-year fixed-rate mortgages and conforming 5/1 ARMs. The weekly mortgage rate survey covers a large sample of mortgage lenders and is conducted over a Wednesday-to-Tuesday cycle, with data released every Wednesday. HSH.com’s survey helps consumers find the best rates on home loans in changing market conditions. Unlike mortgage rate surveys that report average rates only, the Weekly Mortgage Rates Radar’s inclusion of both average rates and average points provides a more accurate view of mortgage terms currently offered by lenders.

Every week, HSH.com conducts a survey of mortgage rate data for a wide range of consumer mortgage products including ARMs, FHA-backed and jumbo mortgages, as well as home equity loans and lines of credit from hundreds of direct lenders in the U.S. For information on additional loan products, visit HSH.com.

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