Mortgage Rates Climb - Average 30-Year Above 5%

The average rate on a 30-year fixed rate mortgage rose by 12 basis points from 4.93% to 5.05% according to data from Freddie Mac. The BestCashCow averages also showed a rise, with the average 30-year fixed rate mortgage moving from 5.031% to 5.042%. 30-year mortgage rates continue to dance 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: 4.750% 4.875%

Points: 0 0

Fees: $1,995 $1,995

While the best available rate increased slightly last week, it came back down this week to where it's been over the last five weeks. AimLoan.com continues to offer the best 30-year fixed rate mortgage in Massachusetts according to the BestCashCow rate tables.

The 15-year FRM this week averaged 4.40 percent, up from last week when it averaged 4.33 percent. The 5-year Treasury-indexed hybrid adjustable-rate mortgage averaged 4.16 versus last week's 4.12 percent. The 1-year Treasury-indexed ARM dropped significantly again from 4.23% to 4.16%.

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

“Interest rates for 30-year fixed mortgages followed long-term bond yields higher and rose above 5 percent this week amid a mixed set of economic data reports” said Frank Nothaft, Freddie Mac vice president and chief economist. “For instance, the January producer price index jumped well above the market consensus, but the consumer price index remained subdued and consumer confidence declined to the lowest level since April 2009, according to the Conference Board.

“There were also varying reports as to the current state of the housing market. The S&P/Case-Shiller® national home price index rose for the third consecutive quarter in the fourth quarter, albeit at a slower rate, and the 20-city composite index showed an increase in December 2009 for the seventh month in a row; six metropolitan areas experienced positive year-over-year growth, compared to four in November. New home sales, however, unexpectedly slowed in January to the smallest pace since records began in 1963, and the supply of homes at the current sales rate rose to 9.1 months, the most since May 2009.”

Mortgage rates remain in a tight range. As the chart shows, they've gone mostly sidways since September of 2009. Many analysts are predicting rates will rise, but weak economic data as well as testimony from Fed Chairman Bernanke show the economy is still far from recovered. Even with the Fed ending its purchase of MBS, it's possible rates may stay well below 6% for some time.

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