Mortgage rates mostly unchanged from record lowsby Tim Manni
Despite the disasters, both natural and market-related, mortgage rates managed to hold onto record lows last week.
HSH.com’s broad-market mortgage tracker–our weekly Fixed-Rate Mortgage Indicator (FRMI)–found that the overall average rate for 30-year fixed-rate mortgages decreased by a two basis points (0.02%) from last week, moving to an average of 4.49 percent.
FHA-backed 30-year fixed-rate mortgages, especially important to first-time homebuyers and low-equity refinancers, were unchanged, closing the week at 4.16 percent.
Hybrid 5/1 ARMs might interest a few borrowers, with five-year fixed-rate periods falling by three basis points this week to average an ultra-low 3.17 percent.
Summer technically still has a few weeks to run, but fall mode will start to kick in before too long.
In years past, the quickening of activity has set us on a new course. Last year, mortgage rates began a run down to then-record lows in October; 2009 produced a downward draft, too, and also featured a dip in through October.
Will recent history repeat itself, or will the economy begin to warm a bit?
We’ll need to wait to see, but for the moment, rates are most likely to be fairly steady again this week.
Want to learn more? Be sure to read the latest edition of our Market Trends newsletter, “Mortgage Rates Hold at Low Plateau.”