Rates on the most popular types of mortgages edged downward, according to HSH.com's Weekly Mortgage Rates Radar. The average rate for conforming 30-year fixed-rate mortgages fell by two basis points (0.02 percent) to 3.52 percent. Conforming 5/1 Hybrid ARM rates decreased by five basis points, closing the Wednesday-to-Tuesday wraparound weekly survey at an average of 2.88 percent.
Slow economic growth into the third quarter
"After a soft quarter to start the year and slow growth in the second quarter, interest rates lost a little traction in the last few days," said Keith Gumbinger, vice president of HSH.com. "However, some early signals that the Brexit vote in June didn't derail growth in July is providing a bit of a counterbalance, so rates only dipped a little."
In the last three years, disappointing economic growth in the first quarter has been followed by a strong spurt in the second. That was not the case this year, and plenty of headwinds tempering faster activity remain in place. The start of the third quarter doesn’t seem to have gotten off to a rocketing start either, so both investors and the Federal Reserve are keenly watching the incoming data.
Mortgage rates seeing little movement
"Mortgage rates have barely wobbled about over the last five weeks," adds Gumbinger. "Increases and decreases have been measured in moves of just two to four basis points, little more than statistical noise. Truth be told, it will take a lot of positive economic data from both the U.S. and abroad to move them materially, and so far that hasn't materialized. Most likely, more aimless drifting will be seen in the days ahead, but Friday's employment report for July may kick rates a little higher or lower, depending upon how strong it is."
Current mortgage rates
Average mortgage rates and points for conforming residential mortgages for the week ending August 2, 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: 2.88 percent
- Average points: 0.12
Average mortgage rates and points for conforming residential mortgages for the previous week ending July 26 were, according to HSH.com:
Conforming 30-year fixed-rate mortgage
- Average Rate: 3.54 percent
- Average Points: 0.21
Conforming 5/1-year adjustable-rate mortgage
- Average Rate: 2.93 percent
- Average Points: 0.14
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.
