Near-record-low mortgage rates expected all summerby Tim Manni
According to HSH.com’s latest Weekly Mortgage Rates Radar, fixed mortgage rates experienced a slight upturn from the previous week, while 5/1 hybrid ARMs were unchanged.
The average rate for conforming 30-year fixed-rate mortgages rose by 3 basis points (0.03 percent) to 3.81 percent. Conforming 5/1 hybrid ARM rates remained unchanged from the previous week, closing the Wednesday-to-Tuesday wraparound weekly survey at an average of 2.83 percent.
Before anyone begins to worry, average rates for 30-year fixed-rate mortgages are only 3 basis points above record lows, and 5/1 ARM rates average just a single basis point above their historic low.
“Low mortgage rates are starting to have the desired effect,” said Keith Gumbinger, vice president of HSH.com. “Refinancing activity continues at a steady pace, home sales are showing signs of life and home prices appear to be stabilizing, perhaps even improving a bit. That’s all welcome news for the beleaguered housing market.”
Two-month forecast for mortgage rates
For those borrowers and market observers looking for a more long-range mortgage-rate forecast, HSH.com produces a Two-Month Forecast for mortgage rates. According to the latest forecast which is good through the end of August, mortgage rates should remain low and steady over the next nine weeks.
“The Federal Reserve extended Operation Twist and the mortgage bond purchasing program until the end of the year,” said Gumbinger. “While a lot can happen between now and then, we are expecting to find record low rates at times over the next couple of months, and should otherwise hold near records for much of the summer.”
Be sure to read our Two-Month Forecast in its entirety.