Rates on the most popular types of mortgages are nearly steady, according to HSH.com's Weekly Mortgage Rates Radar. The average rate for conforming 30-year fixed-rate mortgages remained unchanged at an average rate of 3.67 percent for the period. Conforming 5/1 Hybrid ARM rates increased by a single basis point, closing the Wednesday-to-Tuesday wraparound weekly survey at an average of 2.92 percent.
Rates hold steady near recent lows
"Mortgage rates continue to hold near recent lows," said Keith Gumbinger, vice president of HSH.com. "There's been little economic news for markets to consider, and what there is has featured a mixed-to-slightly warmer tone. Although, it has been enough to keep rates from falling, it is not enough to make them rise, yet."
Some clues as to the direction for interest rates may come Wednesday, when the Federal Reserve releases the minutes from its April meeting. Investors will dig though the verbiage in hopes that the Fed will tip its hand, revealing any intentions to raise short-term rates at its June meeting or beyond. Presently, future markets believe there is a low probability of a move. However, recent comments by some Fed officials may indicate that the markets and the Fed are not closely aligned in their thinking.
Possible uptick in volatility of rates
"At least two regional Fed bank presidents expressed their beliefs that the June meeting is "live", meaning that discussions and possibly action on interest rate will come," adds Gumbinger. "It was also noted by Atlanta Fed President Lockhart that two or three rate hikes are appropriate this year, but markets are prepared for perhaps one. Therefore, we may see an uptick in volatility of mortgage rates for the days and weeks ahead."
Current mortgage rates
Average mortgage rates and points for conforming residential mortgages for the week ending May 17, according to HSH.com:
Conforming 30-year fixed-rate mortgage
- Average rate: 3.67 percent
- Average points: 0.17
Conforming 5/1-year adjustable-rate mortgage
- Average rate: 2.92 percent
- Average points: 0.11
Average mortgage rates and points for conforming residential mortgages for the previous week ending May 10 were, 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
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.
