Rates on the most popular types of mortgages were mixed this week, according to HSH.com's Weekly Mortgage Rates Radar. The average rate for conforming 30-year fixed-rate mortgages remained unchanged at 3.52 percent. Conforming 5/1 Hybrid ARM rates increased by three basis points, closing the Wednesday-to-Tuesday wraparound weekly survey at an average of 2.91 percent.
"It's not clear how the economy is performing, so mortgage rates don't know which way to go at the moment," said Keith Gumbinger, vice president of HSH.com. "A weak report covering second quarter Gross Domestic Product growth two weeks ago gave way to a very solid July employment report. The drag of one report is being offset by the push of the other."
Possible rate increases as soon as September
If the economy is accelerating, it increases the probability that the Federal Reserve will lift short-term interest rate as soon as September. Futures markets on Friday estimated the chance of a move would be about 18 percent, up from about 12 percent before the report, but both are still low probabilities. Evidence of a pickup in growth has been scant or mix-and-match at best. However, with at least another month’s work of data coming out before the next meeting, coupled with July’s reports, it may be enough to prod the Fed into action.
Cheap home financing will continue
"More data covering July and fresh August reports will come in the next few weeks; if solid, they could push mortgage rates a little higher as we go. With that said, we will remain far closer to the year's lows than highs, so opportunities for cheap home financing will continue to persist for a good while yet," added Gumbinger.
Current mortgage rates
Average mortgage rates and points for conforming residential mortgages for the week ending August 9, according to HSH.com:
Conforming 30-year fixed-rate mortgage
- Average rate: 3.52 percent
- Average points: 0.17
Conforming 5/1-year adjustable-rate mortgage
- Average rate: 2.91 percent
- Average points: 0.15
Average mortgage rates and points for conforming residential mortgages for the previous week ending August 02 were, according to HSH.com:
Conforming 30-year fixed-rate mortgage
- Average Rate: 3.52 percent
- Average Points: 0.19
Conforming 5/1-year adjustable-rate mortgage
- Average Rate: 2.88 percent
- Average Points: 0.12
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.
