| After rising drastically last week fixed mortgage | | | | June 19th |
| interest rates moved up slightly this week. 30 Year | | | | 30-yr $1253.60 |
| notes moved from 6.42 to 6.45 and 15 Year notes | | | | 15-yr $1689.87 |
| moved from 6.02 to 6.04. ARMS on the other hand | | | | 5-yr ARM $1184.99 |
| rose a decent amount. 5 Year Arms rose from 5.89 | | | | 1-yr ARM $1096.98 |
| to 5.99 while 1 Year Arms rose from 5.19 to 5.27. | | | | May 29th |
| 30 Year mortgage rates have been on a steady rise | | | | 30-yr $1209.4 |
| having risen for the last straight 6 weeks. Overall 15 | | | | 15-yr $1651.19 |
| Year Fixed and 5 Year Arms have been rising. The | | | | 5-yr ARM $1150.68 |
| only mortgage product that has remained relatively flat | | | | 1-yr ARM $1100.69 |
| over the last 6 weeks is the 1 Year Arm. Below are | | | | So looking at the numbers above one would have |
| mortgage interest rates for the last few weeks. | | | | saved almost $50 by getting a 30 Year loan a month |
| June 26,2008 | | | | ago compared to today. In contrast a mortgage on a 1 |
| 30-yr 6.45 15-yr 6.04 5-yr ARM 5.99 1-yr ARM 5.27 | | | | Year Arm has remained relatively constant only move |
| June 19,2008 | | | | up $6 compared to a year ago. Why Banks would |
| 30-yr 6.42 15-yr 6.02 5-yr ARM 5.89 1-yr ARM 5.19 | | | | want to promote 1 Year Arms is anyone's guess since |
| June 12,2008 | | | | its a riskier product that more frequently leads to |
| 30-yr 6.32 15-yr 5.93 5-yr ARM 5.70 1-yr ARM 5.09 | | | | foreclosures. Based on the other recent decisions by |
| June 5,2008 | | | | banks it would not be a bad assumption to assume |
| 30-yr 6.09 15-yr 5.65 5-yr ARM 5.51 1-yr ARM 5.06 | | | | banks have no idea what they are doing this point. |
| May 29,2008 | | | | At this point getting a 5 Year Loan doesn't really seem |
| 30-yr 6.08 15-yr 5.66 5-yr ARM 5.62 1-yr ARM 5.22 | | | | worth it compared to getting a 30 Year loan since the |
| May 22,2008 | | | | cost savings is not that high (5%). On the other hand if |
| 30-yr 5.98 15-yr 5.55 5-yr ARM 5.61 1-yr ARM 5.24 | | | | you plan on keeping the property for a short period of |
| So rates are one thing but what does this translate | | | | time a 1 Year loan seems attractive considering the |
| into for a mortgage payment. Using our free mortgage | | | | cost savings (12%). |
| calculator lets run the numbers on a 200k loan based | | | | So as always the next question is what rates are |
| on todays rates. We also put in what the mortgage | | | | going to be doing over the next month. In the absence |
| would be a week and a month ago based on past | | | | of future rate cuts its unlikely that rates will go down |
| rates. | | | | very much. Additionally, since rates have risen over the |
| June 26th | | | | last few week it seems that banks are becoming |
| 30-yr $1257.56 | | | | more satisfied with the current rate spread between |
| 15-yr $1692.03 | | | | the FED and current mortgage rates. So one would |
| 5-yr ARM $1197.81 | | | | expect rates to remain flat or have a small rise |
| 1-yr ARM $1106.88 | | | | through the rest of the summer. |