Rates on the most popular types of mortgages temporarily edged higher, according to HSH.com's Weekly Mortgage Rates Radar. The average rate for conforming 30-year fixed-rate mortgages rose by one basis point (0.01 percent) to 3.61 percent. Conforming 5/1 Hybrid ARM rates also increased by one basis point, closing the Wednesday-to-Tuesday wraparound weekly survey at an average of 2.85 percent.
Markets lean the wrong way on Brexit vote
“Financial markets were caught leaning the wrong way on the Brexit vote— mortgage and other interest rates were firming all last week, but have since retreated," said Keith Gumbinger, vice president of HSH.com. "Daily averages tracked in HSH.com surveys show a tenth of a percentage point decline in conforming 30-year FRMs between last Thursday and this Monday, but the decline has flattened out a bit after that initial reaction."
Unlikely that rates will be lifted soon
Havoc in global markets was seen when Britain narrowly voted (about 52 percent to 48 percent) to leave the common market last Thursday. Stocks sold off around the world on Friday and to a lesser extent on Monday, but the shockwaves seem to have subsided for now. With the disruption and injection of new uncertainty into the markets, it is very unlikely that the Federal Reserve will consider lifting short-term rates in July and a move in September is also in doubt. Mortgage rates will likely be lower in the short term and for a longer period than expected as a result.
"Fixed-rate mortgage rates were already running at about three-year lows and this event certainly has reinforced that stance," added Gumbinger. "Can we test the 60-plus year lows of 2012? Possibly, but it bears remembering that unlike today, the Federal Reserve was then actively buying Mortgage-Backed Securities and Treasury bonds, driving rates even lower than the open market could. It's not clear if investors have as insatiable an appetite for these instruments, making it more difficult for rates to test those lows."
Current mortgage rates
Average mortgage rates and points for conforming residential mortgages for the week ending June 28, according to HSH.com:
Conforming 30-year fixed-rate mortgage
- Average rate: 3.61 percent
- Average points: 0.20
Conforming 5/1-year adjustable-rate mortgage
- Average rate: 2.85 percent
- Average points: 0.15
Average mortgage rates and points for conforming residential mortgages for the previous week ending June 21 were, according to HSH.com:
Conforming 30-year fixed-rate mortgage
- Average Rate: 3.60 percent
- Average Points: 0.21
Conforming 5/1-year adjustable-rate mortgage
- Average Rate: 2.84 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.
