Weekly Mortgage Rates Radar: Awaiting Fed, Mortgage Rates Edge Higher

Rates on the most popular types of mortgages rose slightly for a second consecutive week, according to HSH.com's Weekly Mortgage Rates Radar. The average rate for conforming 30-year fixed-rate mortgages rose by four basis points (0.04 percent) to 3.79 percent. Conforming 5/1 Hybrid ARM rates also increased by four basis points, closing the Wednesday-to-Tuesday wraparound weekly survey at an average of 3.14 percent. Despite the increases, both rates remain below peak 2016 levels.

"Updated projections for growth, inflation and monetary policy are due from the Fed at the close of their meeting on Wednesday," said Keith Gumbinger, vice president of HSH.com. "Financial markets are waiting to get a better sense of whether or not the Fed still expects to be lifting rates as many as four times this year as the December 2015 projections suggested."

A weeks-long global financial market storm at the beginning of 2016 gave the Fed pause at their January meeting, when it was unclear whether risks to growth or inflation had become unbalance. As a result, a more wait-and-see approach has been in place. With calmer markets in recent weeks joined by fairly solid economic data, the chances of a resumption of interest rate increases by the Fed this year have risen.

"The Fed probably only needs to see stable financial markets and modest growth to feel comfortable about raising rates," adds Gumbinger. "Those were the conditions in December, and appear to be returning. If this continues to be the case, it would be reasonable to expect a lift in the Federal Funds rate in June, possibly sooner. For the moment, fixed rate mortgages remain closer to this year's lows than highs, creating favorable conditions for the spring homebuying season."

Average mortgage rates and points for conforming residential mortgages for the week ending March 15, according to HSH.com:

Conforming 30-year fixed-rate mortgage

Average rate: 3.79 percent

Average points: 0.17

Conforming 5/1-year adjustable-rate mortgage

Average rate: 3.14 percent

Average points: 0.08

Average mortgage rates and points for conforming residential mortgages for the previous week ending March 08 were, according to HSH.com:

Conforming 30-year fixed-rate mortgage

Average Rate: 3.75 percent

Average Points: 0.15

Conforming 5/1-year adjustable-rate mortgage

Average Rate: 3.10 percent

Average Points: 0.08