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Mortgage Rates Radar 07/26/2016: Mortgage rates tick higher again this week

Rates on the most popular types of mortgages edged higher for a third consecutive week, according to HSH.com's Weekly Mortgage Rates Radar. The average rate for conforming 30-year fixed-rate mortgages rose by four basis points (0.04 percent) to 3.54 percent. Conforming 5/1 Hybrid ARM rates increased by three basis points, closing the Wednesday-to-Tuesday wraparound weekly survey at an average of 2.93 percent.

Tremendous opportunity for homeowners and homebuyers

"Financial markets have quieted greatly over the last few weeks, and U.S. economic data has been pretty favorable, so interest rates have firmed a little," said Keith Gumbinger, vice president of HSH.com. "Despite the uptick, 30-year fixed-rate mortgages remain about a half percentage point below 2016 highs and are presenting a tremendous opportunity for homeowners and homebuyers."

The Federal Reserve completes its latest policy-setting meeting on Wednesday. The vote by Britain to exit the European Union and the effects on global markets are likely to be the center of discussion. The vote and unexpected outcome occurred just after the Fed's last meeting, and global financial markets were roiled for several weeks. Although since settled, what remains unclear is how widespread any economic damage may be, and to a degree, this may color the Fed policy going forward.

Mortgage rates may drift higher

"The Fed will be cautious about tipping its hand, and will likely express a desire to continue observation of incoming data to assess any economic repercussions of the vote," adds Gumbinger. "With that said, the statement that closes the meeting may provide a sense of whether a September rate hike is still 'in play', or whether it will come at a later time. For now, mortgage rates are wandering around with a slightly upward bias, so we might see a continued drift higher in the days ahead."

Current mortgage rates

Average mortgage rates and points for conforming residential mortgages for the week ending July 26, according to HSH.com:

Conforming 30-year fixed-rate mortgage

  • Average rate: 3.54 percent
  • Average points: 0.21

Conforming 5/1-year adjustable-rate mortgage

  • Average rate: 2.93 percent
  • Average points: 0.14

Average mortgage rates and points for conforming residential mortgages for the previous week ending July 19 were, according to HSH.com:

Conforming 30-year fixed-rate mortgage

  • Average Rate: 3.50 percent
  • Average Points: 0.24

Conforming 5/1-year adjustable-rate mortgage

  • Average Rate: 2.90 percent
  • Average Points: 0.16

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.

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