Rates on the most popular types of mortgages trended lower still, according to HSH.com’s Weekly Mortgage Rates Radar. The average rate for conforming 30-year fixed-rate mortgages fell by three basis points (0.03 percent) to 3.60 percent. Conforming 5/1 Hybrid ARM rates decreased by four basis points, closing the Wednesday-to-Tuesday wraparound weekly survey at an average of 2.84 percent.
“The vote for Britain to remain in or leave the European Union is coming up on Thursday and could rattle markets, so investors are wary at the moment,” said Keith Gumbinger, vice president of HSH.com. “The outcome is still unknown, and the repercussions on financial markets of Britain leaving the common market remain a mystery.”
In recent days, opinion polls of British voters have swung back and forth between the decision to leave or remain in the European Union. The London Telegraph’s average of the last six polls has a 50-50 split, so things could go either way. Although mortgage rates are still lower this week than last, improving odds of a successful “remain” vote has lifted interest rates off bottoms, and we may see some of this reflected in mortgage rates over the next few days.
“Mortgage rates will remain low, regardless of the outcome of the “Brexit” vote,” adds Gumbinger. “The U.S. economic fundamentals haven’t changed, and a slow-growth, low-inflation pattern with no signs of action by the Fed should help keep them there well into the summer, if not beyond.”