Moderately better economic reports and speculation that the Federal Reserve intends to change their program of buying mortgage-backed securities have driven mortgage rates higher in recent weeks, but not all of the recent economic news has been positive enough to merit further spikes in interest rates.
Mortgage rates seem to slow their rate of rise
According to HSH.com, the overall average rate for a 30-year fixed-rate home loan rose last week by 5 basis points (0.5 percent) to 4.15 percent. Average rates for 15-year fixed-rate mortgage loans also rose by 5 basis points (0.5 percent) to 3.33 percent. FHA-insured, 30-year fixed-rate home loan rates also rose by 3 basis points (0.03 percent) to an average rate of 3.77 percent. The average rate for a 5/1 Hybrid Adjustable Rate Mortgage (ARM) rose 8 basis points (0.08 percent) to 2.85 percent. Compare mortgage rates for your area before refinancing or applying for a purchase loan.
Will good economic reports continue?
Economic reports released last week continue to demonstrate a pattern of moderate growth, although retail sales in May rose 0.6 percent, the largest gain since February. However, much of that gain came from car sales and higher gas prices.
Weekly claims for new unemployment benefits remained close to the bottom of recent weeks at 334,000, but that still doesn't represent enough of a positive trend to signal a strengthening economy. This week, the Federal Reserve meets and data on the housing market will be released, including housing starts and existing home sales.
The mortgage experts at HSH.com are hopeful that mortgage rates may decline by a few basis points this week.
Our live database of current mortgage rates can help you find the best mortgage rates in your area.