Mortgage Rates Continue Fall - 30 Year at 4.60%

Average 30-year mortgage rates dropped to 4.60% according to BestCashCow/Informa data. That's down from 4.66% and a 2010 high of 5.20% in early April. Fifteen year mortgages rates are close to breaking into the 3% range and now stands at 4% even. Data from the National Bureau of Economic Research indicates that the 30-year fixed hasn't been this low since the 1950s.

This is a boon to homebuyers as well as those looking to refinance their homes. Many economists are not predicting that 30 year US Treasury bonds will drop from a current yield of 2.83% to 2% or under. If that happens, rates on 30 year and 15 year mortgages would also drop. Fifteen-year mortgages could fall into the low 3% range.

The 10-year is the benchmark rate for 30-year mortgages so if the yield continues to fall, mortgage rates will fall with it.

Does that mean you shouldn't buy or refinance now? No. Rates are at record lows and if you have the opportunity to take advantage of them, do it.

What Does This Mean for Homebuyers?

I've been following actual rates, not just averages for a 30-year fixed rate loan in Massachusetts with 0 points ($200,000 loan) for the past four months. Two months ago the rate shot up to 5.125%. The best rate is now 4.460% with 0 points and $1,995 in fees. That's down from 4.50% just a few weeks ago.

View mortgage rates by state and zip code.