Mortgage rates hold steady, applications declineby Tim Manni
Rates on the most popular types of mortgages barely moved, according to HSH.com’s Weekly Mortgage Rates Radar. The average rate for conforming 30-year fixed-rate mortgages rose by a single basis point (0.01 percent) to 3.68 percent. Conforming 5/1 Hybrid ARM rates held steady for a second straight week, closing the Wednesday-to-Tuesday wraparound weekly survey at an average of 2.71 percent.
“A light calendar of fresh economic news has given the markets little to go on over the past week or so,” said Keith Gumbinger, vice president of HSH.com.” As a result, mortgage rates are mostly in a holding pattern after climbing a bit from December’s record lows.”
“All together, mortgage rates appear more inclined to rise than fall at the moment, so if homeowners are thinking about getting a refinance in place, it’s probably a good idea to do so. Rates aren’t poised to leap, but each bit of good economic news helps to build a floor under them, making a significant fall less likely,” added Gumbinger.
Application volume declines
Mortgage applications were down last week, reported the Mortgage Bankers Association. Overall, application volume was down 6.4 percent for the week ending Feb. 8, with refinance and purchase applications falling 6 percent and 10 percent respectively.
Refinances continued to account for 78 percent of all applications, with the share of HARP refinances remaining unchanged at 28 percent.