Mortgage Rates Dip Slightly - January 15, 2010 Update

The average rate on a 30-year fixed mortgage dropped from 5.09% to 5.06% 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 5.143 to 5.122%. Rates seem to vaccilating at the 5% mark as market look 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.

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: 4.875 4.875%

Points: 0 0

Fees: $1,995 $1,995

AimLoan.com has the same deal that was available last week, a 0 point mortgage with a rate of 4.875% and closing costs of $1,058. The APR on the loan is 4.963%.

The 15-year FRM this week averaged 4.45 percent down from from last week when it averaged 4.50 percent. The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 4.32 percent this week, flast from last week's 4.44 percent. The 1-year Treasury-indexed ARM actually rose a bit from 4.33% to 4.39%.

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

Sol Nasisi
Sol Nasisi: Sol Nasisi is the co-founder and a past president of BestCashCow, an online resource for comprehensive bank rate information. In this capacity, he closely followed rate trends for all savings-related and loan products and the impact of rate fluctuations on the economy. He specifically focused on how rates impact consumers' ability to borrow and save. He also has authored a wee

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