Rates on the most popular types of mortgages edged closer to all-time lows, according to HSH.com's Weekly Mortgage Rates Radar.
The average rate for conforming 30-year fixed-rate mortgages fell by another four basis points (0.04 percent) to 3.48 percent. However, Conforming 5/1 Hybrid ARM rates increased by three basis points, closing the Wednesday-to-Tuesday wraparound weekly survey at an average of 2.86 percent.
"Mortgage and other interest rates have been pressed down toward record lows in recent weeks, thanks to the "Brexit" vote and worries about global growth," said Keith Gumbinger, vice president of HSH.com. "Although lower at the moment, the solid June employment report last Friday has reassured investors that growth remains in good shape here in the U.S., and we may see rates firming a little bit in the coming days as a result.".png)
Although since settled, the vote by Britain to exit the European Union in late June initially rattled markets around the world. As the process may take up to two years to complete, there will be plenty of opportunities for volatility ahead, both political and economic. For the moment, though, the results have proven mostly positive for American mortgage shoppers, who are finding new chances to refinance or buy homes with fixed-rate mortgages at about 60-year lows.
"It's not clear how long the recent run of falling rates will last," adds Gumbinger. "As the dust settles, and beyond the initial market reaction, it's starting to appear as though there won't be much by way of near-term effects, but rather that we'll see lower interest rates for a longer period of time. It's certainly possible, even if the incoming economic data are strengthening, that the Federal Reserve will not lift short-term rates until very late this year. As such, even if not always approaching record lows, mortgage rates should remain highly favorable throughout the summer and fall. After that, we'll see."
Average mortgage rates and points for conforming residential mortgages for the week ending July 12, according to HSH.com:
Conforming 30-year fixed-rate mortgage
- Average rate: 3.48 percent
- Average points: 0.18
Conforming 5/1-year adjustable-rate mortgage
- Average rate: 2.86 percent
- Average points: 0.14
Average mortgage rates and points for conforming residential mortgages for the previous week ending July 5 were, 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
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.
