Mortgage Rates Continue to Drop - 30 Year Close to 5%

Average 30-year mortgage rates dropped for the sixth week in a row to 5.02% according to BestCashCow/Informa data. That's down from the high of 5.20% in early April. The drop in 10 year Treasury rates helped to drive mortgage rates down along with softening demand from homebuyers. Europe's problems have undoubtedly been a boon to homebuyers and those looking to refinance.

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. Three weeks ago, the rate shot up to 5.125%. Last week it was 4.875%. This week the rate is 4.750%. Rates have definitely come down.

Other Mortgage Rates

Other rates varied slightly. The average 15-year fixed rate mortgage dropped from 4.42% to 4.35% and is now near its 2010 low of 4.34% in March. The 5 year ARM rose slightly from 3.82% to 3.86% this week. The 1-year ARM, one of the most volatile didn't live up to its billing this week moving from 4.15% to 4.14%.

View mortgage rates by state and zip code.