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Mortgage Rates Radar: Mortgage rates nearly flat this week

By   |  Posted in Mortgage Rates Radar

Rates on the most popular types of mortgages edged slightly downward according to HSH.com's Weekly Mortgage Rates Radar. The average rate for conforming 30-year fixed-rate mortgages fell by one basis point (0.01 percent) to 4.19 percent. Conforming 5/1 Hybrid ARM rates also decreased by one basis points, closing the Wednesday-to-Tuesday wraparound weekly survey at an average of 3.07 percent.

"A slow week for new economic data and the Memorial Day holiday kept rates from moving much this week," said Keith Gumbinger, vice president of HSH.com. "No new concerns came to light, the available information continues to point to a moderate growth pattern and the Federal Reserve remains on course, so we appear to have stabilized for the moment."

The Federal Reserve continues on a path of gradually removing the extraordinary stimulus known as Quantitative Easing (QE), but has increasingly been discussing what comes after that, and how quickly.

At present, it appears that any change to interest rates might appear in mid-2015 at the earliest, provided the economy continues to grow slowly and without inflation.

"QE is slowly fading, but it would seem that the markets are having no significant problem adjusting to its lessening effects," adds Gumbinger. "For the moment, things are quiet, but we'll need to see if this remains the case as we move forward, especially if we start to see a pickup in growth or inflation, as either would begin to inject more volatility into interest rates. For now, favorable conditions prevail."

Average mortgage rates and points for conforming residential mortgages for the week ending May 27, according to HSH.com:

Conforming 30-year fixed-rate mortgage

HSH.com Mortgage Rates Radar - Four Week Trend
  • Average rate:   4.19 percent
  • Average points: 0.17

Conforming 5/1-year adjustable-rate mortgage

  • Average rate:   3.07 percent
  • Average points: 0.08

Average mortgage rates and points for conforming residential mortgages for the previous week ending May 20 were, according to HSH.com:

Conforming 30-year fixed-rate mortgage

  • Average Rate:   4.20 percent
  • Average Points: 0.21

Conforming 5/1-year adjustable-rate mortgage

  • Average Rate:   3.08 percent
  • Average Points: 0.11

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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