Mortgage Rates Continued to Remain Steady This Past Week

Home mortgage rate averages were mixed this past week with fixed rates either dropping slightly or remaining flat while the 5 year treasury indexed ARM average inched higher according to Freddie Mac's weekly rate survey. The 30 year average fell 0.01% from 4.11% down to 4.10% with 0.8 points and the 15 year average remained unchanged at 3.08% with 0.7 points. The 5 year ARM average moved from 3.01% to 3.08% with 0.5 points.

Snapshot of today's pricing (8:29 am EST - rates subject to change without notice)

• On ForTheBestRate.com this morning, the lowest 30 year APR we found (NC) came from:
  Amerisave - 4.072% APR, 3.875% Note Rate,  1.354 pts, $1,995 Fees in APR
• On 20yearmortgageloans.com the lowest 20 year mortgage rate listed (NC) came from:
  Gateway Bank Mortgage - 3.930% APR - 3.750% Note Rate, 1.125 pts, $875 Fees in APR

"Operation Twist" - The Federal Reserve's Move To Lower Long Term Interest Rates

The Federal Reserve is doing what they can to keep interest rates, including mortgage rates, low, encourage bank to lend, and hopefully get the economy moving again. Their latest action has been termed "Operation Twist." The plan in a nutshell is to sell medium term bonds and buy additional longer term bonds, including the 10 year Treasuries. The increased demand should lower the 10 Year Treasury rate, and along with it the mortgage rates that are tied to it. (Adjustable rate mortgages are generally tied to pricing affected by the bonds the Fed is selling, so we will likely see ARM rates increase as fixed rate mortgage pricing drops.)

Current Mortgage Rate Update

Mortgage rates continue to hover at or near historic low points for many home loan products. Been holding off on applying for a purchase mortgage or refinance? It could be time to get off the fence - get a quote for today's rates and see what you could save or how far your money could go with a home purchase.