Rates on the most popular types of mortgages remained in a slow downward drift, according to HSH.com's Weekly Mortgage Rates Radar. The average rate for conforming 30-year fixed-rate mortgages fell by three basis points (0.03 percent) to 4.03 percent. Conforming 5/1 Hybrid ARM rates decreased by just one basis point, closing the Wednesday-to-Tuesday wraparound weekly survey at an average of 3.05 percent.
We might be in a one-move-and-done situation for 2015
"Now that we're past the summer Federal Open Market Committee (FOMC) meeting, and the Fed has said its piece, we wait for data to reckon the timing of the first change to policy," said Keith Gumbinger, vice president of HSH.com. "The markets had been preparing for perhaps two changes to short-term rates this year, but given the modest pace of growth, little inflation and a patient Fed, we might be in more of a one-move-and-done situation for 2015."
Inflation remains below the Fed's two percent speed limit
Economic growth is currently estimated to have run at a 2.3 percent annual rate in the second quarter, a fair but lackluster pace. Inflation remains below the Fed's two percent speed limit, and the Fed noted that it is waiting to see some additional improvement in the labor market before it makes a decision to lift rates. When they do, it will be the first upward move since mid-2006, which was the culmination of a rate-raising campaign that began in 2004.
The Fed's process of normalizing policy will be slow and tempered
"Unless the economy or inflation pick up sharply, the Fed's process of normalizing policy will be slow and tempered," adds Gumbinger. "While it's still a reasonable bet that September will bring the first change, it remains possible that the Fed might wait all the way until December. Between now and the first move, whenever it comes, mortgage rates will continue to be in a wait-and-see mode, bobbing up and down within a fairly narrow range."
Average mortgage rates and points for conforming residential mortgages for the week ending August 04, according to HSH.com:
Conforming 30-year fixed-rate mortgage
- Average Rate: 4.03 percent
- Average Points: 0.17
Conforming 5/1-year adjustable-rate mortgage
- Average Rate: 3.05 percent
- Average Points: 0.09
Average mortgage rates and points for conforming residential mortgages for the previous week ending July 28 were, according to HSH.com:
Conforming 30-year fixed-rate mortgage
- Average Rate: 4.06 percent
- Average Points: 0.16
Conforming 5/1-year adjustable-rate mortgage
- Average Rate: 3.06 percent
- Average Points: 0.08
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 mort-gage rate survey covers a large sample of mortgage lenders and is conducted over a Wednesday-to-Tuesday cycle, with data released every Wednesday. HSH.comís 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 Radarís inclusion of both average rates and average points provides a more accurate view of mortgage terms currently offered by lenders.
Every week, HSH.com conducts a survey of mortgage rate data for a wide range of consumer mortgage products including ARMs, FHA-backed and jumbo mortgages, as well as home equity loans and lines of credit from hundreds of direct lenders in the U.S. For information on additional loan products, visit HSH.com.
