Average 30-Year Mortgage Rate Back Below 5% - Mortgage Rates Update

The average rate on a 30-year fixed mortgage dropped from 5.06% to 4.99% according to data from Freddie Mac. This is consistent with data from the BestCashCow rate tables which show average 30-year mortgage rates moving from 5.122% to 5.075%. Rates seem to vacillating at the 5% mark as the market waits to see what the Fed is going to do with their mortgage backed security repurchase program. If they continue it, rates should stay low for awhile longer. If they begin to phase it out, as is expected, look for rates to continue creeping upward.

In their conference call with analysts, Wells Fargo execs expressed their believe that mortgage rates will go higher, and once the increases start, they could be swift.

Averages though aren't actual mortgages. I like to check and see what rate is actually available. Since I live in Massachusetts I checked Massachusetts mortgage rates. Below I compared the best rate I could find on a $200,000 mortgage with 0 points:

This Week Last Week

Rate: 4.750 4.875%

Points: 0 0

Fees: $1,594 $1,995

Both Advantage Mortgage and AimLoan.com offer a 4.750% 30-year fixed mortgage but the closing costs for Advanced Mortgage are only $1,594 versus $1,995 for AimLoan.com.

The 15-year FRM this week averaged 4.40 percent down from from last week when it averaged 4.45 percent. The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 4.27 versus last week's 4.32 percent. The 1-year Treasury-indexed ARM dropped from bit from 4.39% to 4.32%.

"Fixed mortgage rates followed bond yields lower for the third consecutive week, pushing 30-year mortgages below 5 percent once more," said Frank Nothaft, Freddie Mac vice president and chief economist. "Similarly, ARM rates eased along with shorter-term rates, as the federal funds futures market indicates no increase in the Federal Reserve's target rate following its upcoming committee meeting on January 26th and 27th.

Use the BestCashCow rate tables to find the best mortgage rates in your area.

Sol Nasisi
Sol Nasisi: Sol Nasisi is the co-founder and a past president of BestCashCow, an online resource for comprehensive bank rate information. In this capacity, he closely followed rate trends for all savings-related and loan products and the impact of rate fluctuations on the economy. He specifically focused on how rates impact consumers' ability to borrow and save. He also has authored a wee

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Featured - 30 Year Fixed Mortgage Rates 2024

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PenFed Credit Union
NMLS ID: 401822
6.427% 6.250% 0.88 $6,000 $1,971 Learn More
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NMLS ID: 1025894
6.956% 6.875% 0.63 $2,655 $2,103 Learn More
Rocket Mortgage
NMLS ID: 3030
7.451% 7.375% 0.75 $2,400 $2,211 Learn More
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NMLS ID: 491986
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