| This is now the 11th week in a row where 30 | | | | calculator we ran the current mortgage rates on a |
| mortgage rates have fallen. It also marks the 4th | | | | 200k loan. For good measure we also ran the |
| week where mortgage rates have hit new 40 year | | | | numbers on the rates from a week ago and rates |
| record lows. In this market the 30 year mortgage | | | | from October 30th (when rates first started to slide). |
| product has become by far the most used mortgage | | | | Jan 8th |
| product. This is because the other mortgage rates | | | | 30-yr $1074.86 |
| offer rates similar to the 30 year but with shorter time | | | | 15-yr $1542.28 |
| spans making them somewhat pointless. | | | | 5-yr ARM $1134.32 |
| The 30 year mortgage fell from 5.10 to 5.01. At this | | | | 1-yr ARM $1067.53 |
| point its hard to see the streak of consecutive drops in | | | | Dec 31th |
| the 30 year rate continue much longer. It obviously | | | | 30-yr $1085.89 |
| cant drop forever. I have talked to a few mortgage | | | | 15-yr $1563.93 |
| brokers this week that think 5 is about as low as it will | | | | 5-yr ARM $1144.37 |
| go. A few other think it could get down to 4.5 or so. | | | | 1-yr ARM $1055.38 |
| The 15 year rate dropped from 4.83 to 4.62 making it | | | | Oct 30th |
| a little more relevant than it was last week. | | | | 30-yr $1258.87 |
| The 5 year arm fell to 5.49. As long as the 5 year arm | | | | 15-yr $1708.31 |
| is above the 30 year rate it doesnt really matter what | | | | 5-yr ARM $1245.77 |
| the rate does. The one year arm jumped from 4.85 to | | | | 1-yr ARM $1120.56 |
| 4.95. Although its probably been a pointless mortgage | | | | The mortgage payment for the 30 year loan dropped |
| product for a few weeks it would be interesting to see | | | | $11.03, so not really a huge savings. But if we look back |
| if it rises above the 30 year rate as well. But again | | | | to October 30th we see that the payment dropped |
| there is virtually no reason to get an arm for 4.95 | | | | $184.01 or 14.62%. This is a pretty huge savings. This |
| when you can get a 30 year note for 5.01. | | | | means that you would be making the same mortgage |
| Also just in case you were wondering the fact that | | | | payments on a 200k house purchased today as you |
| the 5 year arm is higher than the 30 year mortgage is | | | | would have on a 170k purchased on October 30th. |
| extremely odd. This is the first time this has every | | | | So what is my advice? First of all it certainly makes |
| happened. Its simply another sign of the strange | | | | sense to refinance. For instance, (as in the example |
| mortgage environment we are currently in. | | | | above), if you purchased a house on October 30th it |
| Jan 8, 2008 | | | | certainly makes sense to refinance if you can lower |
| 30-yr 5.01 15-yr 4.62 5-yr ARM 5.49 1-yr ARM 4.95 | | | | you mortgage payment by almost 15 percent. |
| Dec 31, 2008 | | | | If you are planning on buying a house I would probably |
| 30-yr 5.10 15-yr 4.83 5-yr ARM 5.57 1-yr ARM 4.85 | | | | lock in now rather than later. The chances mortgage |
| Dec 24, 2008 | | | | rates are going to go up is probably greater than the |
| 30-yr 5.14 15-yr 4.91 5-yr ARM 5.49 1-yr ARM 4.95 | | | | chances they will come down much more. There is |
| Dec 18, 2008 | | | | the possibility there will be a 4.5% interest rate from |
| 30-yr 5.19 15-yr 4.92 5-yr ARM 5.60 1-yr ARM 4.94 | | | | the government. One could risk waiting on that. The |
| Dec 11, 2008 | | | | only problems if there is no guarantee that will get |
| 30-yr 5.47 15-yr 5.20 5-yr ARM 5.82 1-yr ARM 5.09 | | | | passed and even if it does we don't know what |
| Beyond mortgage rates its always interesting to look | | | | restrictions might come with a government loan. |
| at actual mortgage payments. Using our mortgage | | | | |