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Mortgage Rates Radar: Mortgage rates push higher this week. More increases likely

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Rates on the most popular types of mortgages moved higher, according to HSH.com's Weekly Mortgage Rates Radar. The average rate for conforming 30-year fixed mortgage rates rose by eight basis points (0.08 percent) to 3.61 percent. Conforming 5/1 Hybrid ARM rates increased by two basis points, closing the Wednesday-to-Tuesday wraparound weekly survey at an average of 2.59 percent.

"Underlying interest rates are moving higher, dragging mortgage rates along with them," said Keith Gumbinger, vice president of HSH.com. "This has come as the result of somewhat better conditions in the labor market, helping investors feel more confident that the recovery will overcome its recent soft patch."

Although not a surprise, the Federal Reserve has now reportedly developed a plan to slow purchases of mortgage-backed securities and Treasury bonds at some point, tapering those purchases as the economy becomes increasingly healthy. The presence of this plan is causing investors to move money back into riskier investments, such as stocks, much as they did in January and February, as some believe the end of these extraordinary supports may be nearer than not.

"The Fed only recently announced that it might even consider increasing the size of QE3, not tapering it", adds Gumbinger. "With inflation low and the economy still stumbling along, there's no reason to worry that these support programs will end anytime soon, but it is prudent to have a plan in place for when the time comes."

Average mortgage rates and points for conforming residential mortgages for the week ending May 14, according to HSH.com:

HSH.com Mortgage Rates Radar - Four Week Trend

Conforming 30-year fixed-rate mortgage

  • Average rate:   3.61 percent
  • Average points: 0.26

Conforming 5/1-year adjustable-rate mortgage

  • Average rate:   2.59 percent
  • Average points: 0.19

Average mortgage rates and points for conforming residential mortgages for the previous week ending May 7 were, according to HSH.com:

Conforming 30-year fixed-rate mortgage

  • Average Rate:   3.53 percent
  • Average Points: 0.21

Conforming 5/1-year adjustable-rate mortgage

  • Average Rate:   2.57 percent
  • Average Points: 0.17


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.

About HSH.com

HSH.com is a trusted source of mortgage data, trends, news and analysis. Since 1979, HSH’s market research and commentary has helped homeowners, buyers and sellers make smart financial choices and save money on mortgage and home equity products. HSH.com, of Riverdale, N.J., is owned and operated by QuinStreet, Inc. (NASDAQ: QNST), one of the largest Internet marketing and media companies in the world. QuinStreet is committed to providing consumers and businesses with the information they need to research, find and select the products, services and brands that best meet their needs. The company is a leader in ethical marketing practices. For more information, please visit QuinStreet.com.

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