The seesaw of expectations about Federal Reserve activities continues, as some economic data indicates a more solid economy while other data suggests continued weakness without worsening conditions. Mortgage rates rose in part because there wasn't enough bad news to make them fall; at the same time, they didn't spike as much as they could have because of the uncertainty over Federal Reserve plans.
According to HSH.com, last week the overall average rate for a 30-year fixed-rate home loan rose by 9 basis points (0.9 percent) to 4.10 percent, an increase of almost one-half percent within the past five weeks. Average rates for 15-year fixed-rate mortgage loans rose by 7 basis points (0.7 percent) to 3.28 percent. FHA-insured, 30-year fixed-rate home loan rates also rose by 10 basis points (0.10 percent) to an average rate of 3.74 percent. The average rate for a 5/1 Hybrid Adjustable Rate Mortgage (ARM) rose just 7 basis points (0.07 percent) to 2.77 percent. Compare mortgage rates for your area before refinancing or applying for a purchase loan.
Economic indicators last week were both good and bad. On the positive side, the monthly employment report for May showed a better-than-expected 175,000 new hires, the best report of the past three months. On the other hand, job reports for the previous two months were revised downward. The unemployment rate ticked up to 7.6 percent, although that may be simply because some unemployed people who had given up looking for work are back on the hunt for a job. The mortgage experts at HSH.com anticipate that this week mortgage rates will hold steady or rise by a few basis points.
Our live database of current mortgage rates can help you find the best mortgage rates in your area.