Rates on the most popular types of mortgages moved a little higher, according to HSH.com's Weekly Mortgage Rates Radar. The average rate for conforming 30-year fixed-rate mortgages rose by three basis points (0.03 percent) to 3.54 percent. Conforming 5/1 Hybrid ARM rates also increased by three basis points, closing the Wednesday-to-Tuesday wraparound weekly survey at an average of 2.93 percent.
Possible rate hike before the end of 2016
"Mortgage rates moved a touch higher on a slightly increased possibility of a move by the Fed in September," said Keith Gumbinger, vice president of HSH.com. "Last Friday's speech by Fed Chair Janet Yellen suggested that the Fed believes the economy is on a better path than earlier this year, and that it will soon be appropriate to raise short-term interest rates."
Ms. Yellen’s speech came in addition to recent comments from Fed Vice Chair Stanley Fischer and presidents of several Federal Reserve Banks, all of which suggested a rate hike or even two might come before the end of 2016. While the probability of a move in September is still less than a 50-50 proposition, incoming data on the employment market and broader economy in August could sway the Fed into action.
'Brexit' disruption has been minimal
"While economic growth in the second quarter of 2016 was a weak 1.1 percent, all signs point to a pickup in the third," adds Gumbinger. "Incoming data seems to suggest that the 'Brexit' disruption has been minimal, and concern about that impact was a key factor in keeping the Fed from moving in June. With markets calm and the economy picking up, the case for a move by the Fed grows, and in turn, interest rates tick higher. However, in the current climate, they cannot go very far."
Current mortgage rates
Average mortgage rates and points for conforming residential mortgages for the week ending August 30, according to HSH.com:
Conforming 30-year fixed-rate mortgage
- Average rate: 3.54 percent
- Average points: 0.17
Conforming 5/1-year adjustable-rate mortgage
- Average rate: 2.93 percent
- Average points: 0.12
Average mortgage rates and points for conforming residential mortgages for the previous week ending August 23 were, according to HSH.com:
Conforming 30-year fixed-rate mortgage
- Average rate: 3.51 percent
- Average points: 0.23
Conforming 5/1-year adjustable-rate mortgage
- Average rate: 2.90 percent
- Average points: 0.17
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.
