Mortgage Rates - Average 30-Year Fixed at 10 Week Low of 4.93%

The average rate on a 30-year fixed mortgage dropped to a 10-week low, moving from 4.97% to 4.93% according to data from Freddie Mac. This differs from the BestCashCow averages where the average 30-year fixed mortgage rose from 5.015% to 5.031%. This divergence continues to reflect market uncertainty as 30-year rates vacillate around the 5% range.

Averages though won't get you a mortgage 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 30-year fixed rate mortgage with 0 points:

This Week Last Week

Rate: 4.875% 4.750%

Points: 0 0

Fees: $1,995 $1,995

For the first time in a month, the best rate mortgage rate for this criteria has increased, reflecting the rise in the BestCashCow national average.

The 15-year FRM this week averaged 4.33 percent down slightly from last week when it averaged 4.34 percent. The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 4.12 versus last week's 4.19 percent. The 1-year Treasury-indexed ARM dropped significantly from bit from 4.33% to 4.23%..

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

“Mortgage rates eased for the second week, while economic data releases suggest that the housing market may be in a slow state of recovery,” said Frank Nothaft, Freddie Mac vice president and chief economist. “The National Association of Realtors® (NAR) reported that existing home sales rose in 48 states and the District of Columbia between the third and fourth quarters of 2009; 32 states experienced double-digit growth. In addition, 67 metropolitan areas saw positive annual house price growth in the fourth quarter, more than double that in the third quarter, according to the NAR.

Mortgage rates are now hovering close to record lows and homebuyers and for homebuyers who haven't refinanced now is a great opportunity. Many are finding that when they refinance, they can cut their mortgage term down to 15 years, savings tens of thousands of dollars on interest.

The economy's low interest rates may be a saver's pain, but they are a borrowers gain.

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