Rates on the most popular types of mortgages declined for the first time in a month or more, according to HSH.com's Weekly Mortgage Rates Radar. The average rate for conforming 30-year fixed-rate mortgages fell by six basis points (0.06 percent) to 3.69 percent. Conforming 5/1 Hybrid ARM rates decreased by eight basis points, the largest decline since early April, closing the Wednesday-to-Tuesday wraparound weekly survey at an average of 2.97 percent.
"The most recent economic data was on the soft side, especially for the May employment report," said Keith Gumbinger, vice president of HSH.com. "After a soft first quarter, the kind of strong economic rebound we've seen in the second quarter in each of the past few years doesn't appear to have formed, and this will probably give the Fed pause for at least another meeting."
Low mortgage rates for spring homebuying
The Federal Reserve has taken great pains to prepare the financial markets for the eventuality of higher short-term interest rates. However, the central bank's plan to raise rates has been thwarted on a number of occasions by soft growth patches, unsettled financial markets and global conditions that have kept the Fed in check.
"It's still likely that we will see a rate increase this year, perhaps two," added Gumbinger. "With almost half the year already over and no clear signs of any economic acceleration or strong uptick in inflation, interest rates can't rise drastically. The economy is only chugging along which isn't especially welcome, but good news is that low mortgage rates will continue to hang around to complete the spring homebuying season and beyond."
Current mortgage rates
Average mortgage rates and points for conforming residential mortgages for the week ending June 7, according to HSH.com:
Conforming 30-year fixed-rate mortgage
- Average rate: 3.69 percent
- Average points: 0.15
Conforming 5/1-year adjustable-rate mortgage
- Average rate: 2.97 percent
- Average points: 0.09
Average mortgage rates and points for conforming residential mortgages for the previous week ending May 31 were, according to HSH.com:
Conforming 30-year fixed-rate mortgage
- Average Rate: 3.75 percent
- Average Points: 0.14
Conforming 5/1-year adjustable-rate mortgage
- Average Rate: 3.05 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.
