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Mortgage Rates Radar: Mortgage rates steady this week

By   |  Posted in Mortgage Rates Radar

Rates on the most popular types of mortgages were virtually unchanged this week according to HSH.com's Weekly Mortgage Rates Radar, with only the hybrid 5/1 ARM making any move at all. The average rate for conforming 30-year fixed-rate mortgages remained unchanged, holding firm at 4.46 percent. Conforming 5/1 Hybrid ARM rates increased by four basis points (0.04 percent), closing the Wednesday-to-Tuesday wraparound weekly survey at an average of 3.22 percent.

"Mortgage rates are holding pretty steady, at least for the moment," said Keith Gumbinger, vice president of HSH.com. "Recent comments by Federal Reserve Chair Janet Yellen helped to lift them, but as the economic data has been mixed of late, there has been little continued upward traction."

Economic improvement expected

Some fresh March data, including reviews of manufacturing strength and auto sales, are pointing to an uptick in economic activity as the winter has waned, and more such improvement is expected to be seen in upcoming reports. On Friday, the March employment report will be released; in the past, this report has been a mortgage-market-moving event when hiring is stronger or weaker than expected. Presently, falling claims for initial unemployment benefits in March suggest that an upside surprise is not out of the question.

"If Friday's employment report moves us back to or above the average of 200,000 new hires seen between April 2014 and November of 2013, we may see another little bump in mortgage rates," adds Gumbinger. "Job market health is first and foremost in the mind of Yellen, and the faster the economy is moving toward full employment, the sooner an upward change in short-term interest rates might happen."

Current mortgage rates

Average mortgage rates and points for conforming residential mortgages for the week ending April 1, according to HSH.com:

HSH.com Mortgage Rates Radar - Four Week Trend

Conforming 30-year fixed-rate mortgage

  • Average rate:   4.46 percent
  • Average points: 0.16

Conforming 5/1-year adjustable-rate mortgage

  • Average rate:   3.22 percent
  • Average points: 0.09

Average mortgage rates and points for conforming residential mortgages for the previous week ending March 25 were, according to HSH.com:

Conforming 30-year fixed-rate mortgage

  • Average Rate:   4.46 percent
  • Average Points: 0.15

Conforming 5/1-year adjustable-rate mortgage

  • Average Rate:   3.18 percent
  • Average Points: 0.08

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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