Rates on the most popular types of mortgages eased slightly, wandering closer to 2016 lows again, according to HSH.com's Weekly Mortgage Rates Radar. The average rate for conforming 30-year fixed-rate mortgages fell by four basis points (0.04 percent) to 3.67 percent. Conforming 5/1 Hybrid ARM rates decreased by six basis points, closing the Wednesday-to-Tuesday wraparound weekly survey at an average of 2.91 percent.
Awaiting economic data
"Markets are back to a wait-and-see mode, following fresh inbound economic data," said Keith Gumbinger, vice president of HSH.com. "The April jobs report last week was a little on the soft side, allowing interest rates a little more space to decline. However, now we are in a slot where there isn't much news to work with, so mortgage rates tend to drift."
There are a few clues regarding the health of the economy due this week, including indicators covering inflation, consumer moods, and retail sales. While each by itself isn't substantial enough to move the market much, a collective warmer or cooler tone will tend to push rates a little higher or lower.
Signals point to modest pattern
"After the most influential economic reports come in the first days of each month, a lighter schedule of economic data can allow markets a chance to consider the broader impact, such as whether growth or inflation is gaining speed. At present, all signals are pointing to a modest pattern. With the Fed sidelined for at least another month, a gentle sideways-to-slightly-downward pattern for rates is in place for mortgage seekers."
Current mortgage rates
Average mortgage rates and points for conforming residential mortgages for the week ending May 10, according to HSH.com:
Conforming 30-year fixed-rate mortgage
- Average rate: 3.67 percent
- Average points: 0.16
Conforming 5/1-year adjustable-rate mortgage
- Average rate: 2.91 percent
- Average points: 0.10
Average mortgage rates and points for conforming residential mortgages for the previous week ending May 03 were, according to HSH.com:
Conforming 30-year fixed-rate mortgage
- Average Rate: 3.71 percent
- Average Points: 0.19
Conforming 5/1-year adjustable-rate mortgage
- Average Rate: 2.97 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.
