Rates on the most popular types of mortgages remain at low levels which helps make homeownership easier for buyers, especially first-time homeowners.
The average rate for conforming 30-year fixed-rate mortgages fell by seven basis points (0.07 percent) to 4.38 percent, says HSH.com in its Weekly Mortgage Rates Radar.Conforming 5/1 Hybrid ARM rates decreased by a tenth of a percentage point (0.10 percent), closing the Wednesday-to-Tuesday wraparound weekly survey at an average of 3.11 percent.
“After spending the end of the winter running up to multi-month highs, we’ve reversed course and stand at multi-month lows this week,” Keith Gumbinger, vice president of HSH.com said in a press release. “Although the economy may be growing, it seems to be doing so more sideways than upward, and investors don’t seem certain that the stock market is where they want to keep their money, so bonds have been slightly favored of late, lowering yields and mortgage rates.”
The tough winter weather, low inflation and consumers showing caution are credited with keeping the mortgage rates at this level.
“It looks as though the economy is going to be slower to rebound this spring than was expected,” adds Gumbinger. “That’s actually not a bad thing as far as mortgage rates are concerned, especially since the traditional ‘spring home buying season’ is getting underway. News that rates are closer to recent lows than highs might actually put a few more buyers in the market this spring. Hopefully, they will find sellers to meet them.”
Here are the current numbers from HSH.com:
Conforming 30-year fixed-rate mortgage
-Average rate: 4.38 percent
-Average points: 0.22
Conforming 5/1-year adjustable-rate mortgage
-Average rate: 3.11 percent
-Average points: 0.13