RateAPY

30-year Fixed Mortgage Rates Average 4.78%

Posted by: RateAPY Bank Rates News
May 28th, 2010

Mortgage rates continue to drop for the seventh straight week. According to the Freddie Mac Primary Mortgage Market Survey (PMMS), the average 30-year fixed conforming mortgage rate was 4.78% with 0.7 points this week, down from 4.84% last week. The year-over-year trend is now down. A year ago at this time the 30-year product was 4.91%.

Average Mortgage Rates For Week Ending May 27, 2010

• 30-year FRM - 4.78% with 0.7 points
• 15-year FRM - 4.21% with 0.7 points
• 5/1 ARM - 3.97% with 0.7 points and 2.75% margin
• 1-year ARM - 3.95% with o.6 points and 2.75% margin

Where Mortgage Rates May Be Headed Next Week

Mortgage rates often take their directional cue from the stock market. When stocks head up, mortgage rates head up. Strong equities usually mean a weaker fixed income sector. The last couple of days stocks have rallied, likely signaling higher mortgage rates for next week.