Rates on the most popular types of mortgages declined again, according to HSH.com's Weekly Mortgage Rates Radar. The average rate for conforming 30-year fixed-rate mortgages fell by nine basis points (0.09 percent) to 3.52 percent. Conforming 5/1 Hybrid ARM rates decreased by two basis points, closing the Wednesday-to-Tuesday wraparound weekly survey at an average of 2.83 percent.
The "Brexit" effect
"Concerns about the "Brexit" effect on the global economy remain center stage," said Keith Gumbinger, vice president of HSH.com. "The economic and political upheaval continues to rattle investors around the globe, who are opting for the relative safety of bonds, driving down yields and pulling mortgage rates down along with them."
Since the outcome of "Brexit" vote was released on June 24, interest rates have been declining fairly quickly, with sovereign bonds getting an influx of cash. In some countries, yields on bonds have turned negative, making U.S. bonds look relatively attractive even with puny (but positive) yields available.
Rates on a downward trend
"Thirty-year, fixed-rate mortgage rates have declined nearly steadily since June 24," added Gumbinger. "Rates are still falling as we start this week, but there's no way to know how long this downward trend will last. The decline opens the mortgage refinancing window incrementally wider, so homeowners with rates above perhaps 4.5 percent should be running numbers to see if a refinance will work to their advantage."
Additional analysis can be seen in HSH.com's MarketTrends newsletter.
Current mortgage rates
Average mortgage rates and points for conforming residential mortgages for the week ending July 5, according to HSH.com:
Conforming 30-year fixed-rate mortgage
- Average rate: 3.52 percent
- Average points: 0.19
Conforming 5/1-year adjustable-rate mortgage
- Average rate: 2.83 percent
- Average points: 0.17
Average mortgage rates and points for conforming residential mortgages for the previous week ending June 28 were, 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
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.
