| In the very beginning of the month of August the | | | | industry is due to the higher unemployment in the |
| mortgage interest rates remained quite stable. Except | | | | recent times. Some believe that the recent drastic |
| a few mortgage program interest rates most of then | | | | drop in mortgage market is due to the tighter lending |
| remained unchanged to what it was in the last week | | | | standards and cooling home prices. This fall in the |
| of July. Interest rates of mortgage programs like | | | | mortgage interest rate has in fact started to affect the |
| 10-Year Treasury and 30-Year Treasury were down | | | | sub-prime lending too. |
| by 0.06% and 0.04% respectively. And the interest | | | | Due to the fall in mortgage interest rates the U.S. |
| rate of programs like USD LIBOR 6-month and USD | | | | mortgage applications rose for the second straight |
| LIBOR 1 Year were up by very nominal 0.015% and | | | | week. Experts believe that the recent disturbance in |
| 0.022%. Other than these, the interest rates of 30 year | | | | the mortgage market is the reason behind the rising |
| fixed average, 15 year fixed average, 5/1 ARM | | | | applications. The housing sector and the homebuilders |
| average, 3/1 ARM average and some other programs | | | | market are down and so are the financial companies |
| remained unchanged. | | | | including mortgage companies. Last week, the fall in |
| On the third day of the month most of the mortgage | | | | the mortgage market spread to the financial markets |
| interest rates fell down by units in decimal due to | | | | with a rapid speed and provoked the fear that tighter |
| change in market conditions. But the interest of | | | | credit will have a bigger impact on consumers, markets |
| short-term mortgage loans like USD LIBOR 6-month | | | | and the economy. |
| and 1-year were raised up to 5.318% and 5.230%. | | | | It has been forecasted that the interest rates for the |
| During the first 15 days of the month the mortgage | | | | 80% of homeowners and buyers that qualify for |
| interest rate fluctuated a lot. Though the average | | | | A-paper mortgages will probably remain stable or |
| fluctuation rate was very low but it kept on fluctuating | | | | slightly increase in the near future. Those who are with |
| up and down. On most of the occasions the | | | | sub-prime credit or don't have proper documents to |
| short-term loan interests got affected and kept | | | | prove income, may face difficulty in getting the loans |
| changing everyday. | | | | or they might be charged with higher interest rates or |
| Analysts believe that the decline in the mortgage | | | | huge down payment. |