Mortgage rates rise to early-July levelsby Tim Manni
Rates on the most popular types of mortgages were mixed this week, according to HSH.com’s Weekly Mortgage Rates Radar. The average rate for conforming 30-year fixed-rate mortgages rose by 10 basis points (0.10 percent) to 3.79 percent, while conforming 5/1 Hybrid ARM rates decreased by a single basis point, closing the Wednesday-to-Tuesday wraparound weekly survey at an average of 2.78 percent.
“Mortgage and other interest rates have climbed a little off rock-bottom lows, at least for the moment,” said Keith Gumbinger, vice president of HSH.com. “Over the past couple of weeks, there has been an absence of terrible economic news to keep downward pressure on rates, but just enough encouraging signs to lift them above record lows.”
With a somewhat less bleak economic outlook at present, investors seemed to have shifted some cash out of the safe-haven of U.S. Treasuries, lifting yields and edging fixed mortgage rates upward.
“The 10-year Treasury yield influences mortgage rates and yields there have risen by about a third of a percentage point from record lows in recent weeks,” explains Gumbinger. “Thirty-year fixed mortgage rates have risen about half that, putting us back at early-July levels–fantastic ones, just not record breaking.”
Could mortgage rates still retreat?
“Of course,” notes Gumbinger. “Just a few poor economic reports or more trouble overseas and we’ll be right back at record lows.”
For more, read the latest Weekly Mortgage Rates Radar in its entirety.