Average 30 Year Mortgage Ticks Up to 4.68% - Still Near Record Lows

Average 30-year mortgage rates ticked up slighltly from 4.66 to 4.68% according to BestCashCow/Informa data. That's down from a 2010 high of 5.20% in early April. Fifteen year mortgages rates are even lower at 4.13%. This is a boon to homebuyers as well as those looking to refinance their homes. While the WSJ is suggesting that rates may go higher shortly, I don't think that is necessarily the case. Rates may be held down by a slowing economy and a lack of mortgage demand. Some economists fear a double dip recession. In addition, Eureopean markets are still unsettled due to sovereign debt issues. There is also mounting concern about a China bubble. Should the Chinese market pop, a flood of money will pour into the US Treasuries seeking safety and stability and driving yields down further.

The 10 year Treasury is now at 2.94%, a full percentage point lower than two months ago, when it briefly went over 4%. 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 4.50% with 0 points and $1,995 in fees.

View mortgage rates by state and zip code.