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.
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