Mortgage rates rise for second straight week
by Tim Manni
Mortgage rates have now risen for the second week in a row.
According to the latest weekly mortgage rate report from HSH.com, rates on two of the most popular types of mortgages rose the week ending October 18. Yet despite the increase, mortgage rates remain near record lows.
“Economic news continues to brighten, pushing mortgage rates upward somewhat,” said Keith Gumbinger, vice president of HSH.com. “But despite the increase this week, there are few reasons for rates to continue to climb.”
HSH.com’s “Weekly Mortgage Rate Radar” reports the average rates and points offered by lenders for the conforming 30-year fixed-rate mortgage and the conforming 5/1 adjustable-rate mortgage.
Average rates for the conforming 30-year fixed-rate mortgage rose by 8 basis points (0.08 percent) to 4.26 percent. Conforming 5/1 hybrid ARM rates increased by only 3 basis points, closing the Wednesday-to-Tuesday wraparound weekly survey at an average of 3.11 percent:
Conforming 30-year fixed-rate mortgage
- Average rate: 4.26 percent
- Average points: 0.26
Conforming 5/1 ARM
- Average rate: 3.11 percent
- Average points: 0.22
Average mortgage rates and points for conforming residential mortgages for the previous week ending October 11 were, according to HSH.com:
Conforming 30-year fixed-rate mortgage
- Average rate: 4.18 percent
- Average points: 0.28
Conforming 5/1 ARM
- Average rate: 3.08 percent
- Average points: 0.22
With plenty of challenges still facing the economy, Gumbinger notes, “There should be ample opportunity for mortgage rates to ease again. The cumulative rate increase in recent weeks has been barely an eighth of a percentage point, so it’s not enough to warrant much concern.”
Methodology
The Weekly Mortgage Rate Radar reports the average rates and points offered on conforming 30-year fixed-rate mortgages and conforming 5/1 ARMs. The weekly mortgage rate survey covers a large sample of mortgage lenders and is conducted over a Wednesday-to-Tuesday cycle, with data released every Wednesday. HSH.com’s 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 Rate Radar’s 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.
