Rise in mortgage rates continues

Rates on the most popular types of mortgages continued their upward march according to HSH.com’s Weekly Mortgage Rates Radar. The average rate for conforming 30-year fixed-rate mortgages rose by nine basis points (0.09 percent) to 4.08 percent. Conforming 5/1 Hybrid ARM rates increased by six basis points, closing the Wednesday-to-Tuesday wraparound weekly survey at an average of 2.80 percent.

“The rise in mortgage rates continues unabated again this week,” said Keith Gumbinger, vice president of HSH.com. “Although the size of the increase was smaller, it is still unwelcome as the housing market tries to gain momentum.”

Despite increases over the past month and a half, mortgage rates remain very favorable. “With a $ 200,000 loan amount, the difference in monthly payment from recent fixed-rate lows to today’s average amounts to about $ 66 more each month,” notes Gumbinger. “That may be enough to quash a refinance, but shouldn’t be a major setback for a home purchase transaction.”

Borrowers wishing to see how the recent rate increase might affect their costs are encouraged to use HSH.com’s mortgage payment calculator.

The Federal Reserve meeting next week is likely to impact future rates, says Gumbinger. “If the Fed signals that QE programs are coming to an end soon, mortgage rates may rise some more, but soothing words about a longer continuation of the programs or a very slow tapering process would provide some space for them to retreat a little.”

Average mortgage rates and points for conforming residential mortgages for the week ending June 11, according to HSH.com:

Conforming 30-year fixed-rate mortgage

  • Average rate:   4.08 percent
  • Average points: 0.26

Conforming 5/1-year adjustable-rate mortgage

  • Average rate:   2.80 percent
  • Average points: 0.17

Average mortgage rates and points for conforming residential mortgages for the previous week ending June 4 were, according to HSH.com:

Conforming 30-year fixed-rate mortgage

  • Average Rate:   3.99 percent
  • Average Points: 0.23

Conforming 5/1-year adjustable-rate mortgage

  • Average Rate:   2.74 percent
  • Average Points: 0.17


HSH Associates Financial News Blog

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