Foster City, CA (PRWEB) February 01, 2012
After a recent upward blip, rates on the most popular types of mortgages retreated again this week, according to HSH.com’s Weekly Mortgage Rate Radar. The average rate for conforming 30-year fixed-rate mortgages fell by 5 basis points (0.05 percent) to 4.03 percent. Conforming 5/1 hybrid ARM rates decreased by a single basis point, closing the Wednesday-to-Tuesday wraparound weekly survey at an average of 2.99 percent. These average rates remain barely above record lows.
Slow economic growth in the U.S. and abroad has had a dampening effect on both inflation and interest rates. Optimism about the direction of the economy was dimmed somewhat after the Federal Reserve meeting last week, said Keith Gumbinger, vice president of HSH.com. “That Fed members expect low short-term rates to persist well into 2014 is a sign that weak economic growth will be with us for some time yet to come.
There is some growing speculation that the Fed may again be called upon to provide additional support for the economy in the form of a new mortgage or Treasury bond-buying program at some point this year, said Gumbinger. Any move would further underscore how poorly the economy is performing, but might foster even lower mortgage rates, should it come.”
Average mortgage rates and points for conforming residential mortgages for the week ending January 31 were, according to HSH.com:
Conforming 30-year fixed-rate mortgage