Economic news lately has been a mixed bag of ups and downs and investors have looked to the Federal Reserve to send a stronger signal about a solid return to a healthier economy. In spite of the lack of a solid message from the Fed, mortgage rates rose last week.
Mortgage rates make upward move
According to HSH.com, last week the overall average rate for a 30-year fixed-rate home loan rose by 4 basis points (0.04 percent) to 4.59 percent. Average rates for 15-year fixed-rate mortgage loans also rose by 4 basis points (0.04 percent) to 3.68 percent. FHA-insured, 30-year fixed-rate home loan rates also rose by 5 basis points (0.05 percent) to an average rate of 4.23 percent. The average rate for a 5/1 Hybrid Adjustable Rate Mortgage (ARM) fell by 1 basis point (0.01 percent) to 3.32 percent. The gap between ARMs and fixed-rate loans widened again which could spur new interest in this, the most popular ARM loan product. Compare mortgage rates for your area before refinancing or applying for a purchase loan.
Economic news still mixed
The Fed revised its view of the economy last week from "moderate" growth to "modest," but at the same time Gross Domestic Product was revised to show that it rose 1.1 percent during the first quarter of 2013 and 1.7 percent during the second quarter. While still weaker than optimal, those GDP numbers are better than what had been expected. New unemployment claims for the week ending July 26 were the lowest since the recovery began (326,000), but on the less positive side, there were only 162,000 new jobs created in July, far less than expected. The unemployment rate dropped to 7.4 percent in spite of the lack of a robust hiring month.
The mortgage experts at HSH.com anticipate that rates are more likely to rise than fall in the coming weeks, and they predict rates will stay flat or rise a little again this week.
Our live database of current mortgage rates can help you find the best mortgage rates in your area.