Average 30-Year Mortgage Rate Little Changed - Mortgage Rate Update

The average rate on a 30-year fixed mortgage dropped slightly over the past week, moving from 4.99% to 4.98% 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 5.075% to 5.068%. While the Fed has indicated it plans to phase out it purchase of mortgage backed securities over the next couple of months, mortgage market have taken it in stride. Since reaching a recent high of 5.14% on December 31, 2009, rates have dropped through all of January. The low for last year for 30-year fixed-rate mortgages was 4.71%.

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 mortgages and 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                   4.750%

Points:                                            0                             0

Fees:                                           $1,995               $1,594

Last week, Advantage Mortgage was offering a 4.750% APR mortgage with fees of $1,594. That's no longer available and the lowest rate is AimLoan.com with $1,995 in fees. This shows how dynamic the mortgage is week-to-week and how shopping can save you some money.

The 15-year FRM this week averaged 4.39 percent down from from last week when it averaged 4.40 percent.  The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 4.25 versus last week's 4.27 percent. The 1-year Treasury-indexed ARM dropped from bit from 4.32% to 4.29%.

Here's what Freddie Mac had to say about the rate situation:

“Mortgage rates held steady this week ahead of the Federal Reserve's (Fed) policy committee meetings ,” said Frank Nothaft, Freddie Mac vice president and chief economist.  “The Fed announced on January 27th that economic activity has continued to strengthen.  It also noted that with substantial resource slack continuing to restrain cost pressures and with longer-term inflation expectations stable, inflation is likely to be subdued for some time.

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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