On Wall Street, U.S. economic growth is being offset by global woes, benefitting home buyers in an unexpected way: Fixed mortgage rates fell to new 2014 lows this week, according to a national survey by HSH.com. The average rate for a conforming 30-year fixed-rate mortgage, according to HSH.com's Weekly Mortgage Rates Radar, fell by four basis points to 4.15 percent with 0.17 average points. That's nearly a half percentage point lower than at the beginning of the year.
Here's how Keith Gumbinger, HSH.com's vice president, explains the situation: "Solid economic growth in the U.S. firms up mortgage and other interest rates, then concerns about growth, deflation and armed skirmishes around the globe find investors rushing to the safety and stability of Treasuries. As that money comes in, bond prices rise and yields fall, pulling mortgage rates down along with them...troubles around the world continue to be a mortgage shopper's best friend."
The average conforming 5/1 Hybrid ARM rates remained unchanged for a third-straight week at an average of 3.14 percent.