A good rate right now on a 30 year fixed is 4.75% with no points. In order to get the best possible rate, you need a 740 credit score although rates are still very good all the way down to a score of 640.

Hi Steve,

Do you know of any places where I can get a 4.75% loan with no points and no origination fees?

I am shopping around and find there most of the lower rate loans have origination fees.

It is too late for the 4.5% rates. They have already started to creep back up. 4.75% is a good rate right now. Often when the treasury announces that they are going to buy these MBS, rates dip pretty steeply. That was a week ago. Remember, mortgage rates change like the value of the stock market changes. It is constantly in flux and rates can change multiple times a day. My advice now is if you find a rate that makes sense you should lock it down. We are starting to see signs of inflation and that is one of the primary forces that cause interest rates to rise.

I just got a quote for a refinance mortgage at 4.75% with no points. But per Mark's advice, I am going to see if I can get it at 4.5%.

The Federal Reserve announced on Wednesday, March 18, 2009 that it would be buying up to $300 billion in Treasuries and $750 billion in mortgage-backed securities over the next six months. This caused an immediate drop in short-term Treasuries, driving the interest rate on 30 year mortgages below 5%. It is likely that there will be a further drop in interest rates over the next week or so as the market absorbs the news. So if you do apply for a mortgage, make sure that you have the ability to relock the rate over the next 30-45 days if rates continue to drop. It is likely that mortgage rates will drop to 4.5%.

See http://online.wsj.com/article/SB123738260867170461.html?mod=googlenews_wsj for additional details.