Today's Mortgage Rates

A slight dip for fixed-rate mortgages happened this week, but they've been essentially motionless for the last few weeks.

As reported by Freddie Mac today, the average offered interest rate for a conforming 30-year fixed-rate mortgage decreased by two basis points (0.02%), easing to 2.96%, The small move was sufficient to put the most popular mortgage rate at its lowest point since early February. Conforming 15-year FRMs slid by half as much as their longer-term counterparts, with a one basis point fall to 2.30%. Meanwhile, the initial fixed interest rate for a conforming hybrid 5/1 ARM bounced six one-hundredth of a percentage point (0.06%) higher to 2.70%, taking back about one-third of the previous week's decline.

Given strengthening growth and firming price pressures, there are increasing reasons to expect that interest rates should be rising at least somewhat. However, investors seem to be okay with the present level for rates for now, following the lead of the Federal Reserve, who expects to maintain both low-rate and QE-style bond buying programs for at least a while longer yet.

It may be that markets was waiting for the first inkling that a change to Fed policies may be coming before the next significant leg up for interest rates and mortgage rates happens. Such a sign might come when the minutes from the April Fed meeting are released later this month, but more likely when the June Fed meeting closes mid-month and new forward projections from members are released.

Mortgage rates seem content to wobble to and fro at the moment without any clear direction, so they should be pretty flat for the next few days.

Each week in HSH's MarketTrends newsletter, we track and discuss economic conditions that affect mortgage rates and their impact on housing markets and consumers. Read the most recent edition of MarketTrends or subscribe for email delivery.