30-Year Mortgage Flat While 5-1 ARM Rate Drops to 3.86%

After breaking through 5% and surging to 5.20% three weeks ago, the 30-year average mortgage rate has settled in and declined slightly. As of today, the average is 5.11% according to BestCashCow/Informa data. The lack of inflation in the economy and the growing view that rates may stay low for an extended period of time have helped to push Treasury rates, and by connection mortgage rates lower.

What Does This Mean for Homebuyers?

I've been following actual rates, not just averages for a 30-year fixed rate loan in Massachusetts for the past four months. Until two weeks ago, a homebuyer could get a $200,000 loan at 0 points for 4.5%. Three weeks ago, the rate shot up to 5.125%. It now rests at 4.875%.

Other Mortgage Rates

Other rates moved up slightly. The average 15-year fixed rate mortgage rose from 4.42% to 4.45%, up from a low of 4.34% in March. As the chart shows, the 5-year ARM has dropped significantly in recent weeks from 4.03% to 3.86% this week. The 1-year ARM, one of the most volatile of the rates tracked actually remained steady for once at 4.87%.

View mortgage rates by state and zip code.