| Mortgage interest rates moved down again this week. | | | | are feeling better about handing out mortgages? I |
| This marks the fifth week in a row where 30 Year | | | | would not go that far. If anything I would think that |
| mortgage rates have either fallen or held steady. This | | | | rates rose suddenly a month ago and simply overshot. |
| is of course good news for people looking to buy a | | | | And now they are simply reacting to that original large |
| house. This is also good news for the real estate | | | | increase by moving down a bit. So let's look at what |
| market. A few weeks ago a weakened real estate | | | | the mortgage rates mean for an actual mortgage. |
| market was dealing with additional burden of some of | | | | Using our mortgage calculator let's run through the |
| the highest mortgage rates we have seen in a year. | | | | numbers based on a 200k mortgage. We looked at |
| Below are the mortgage rates for the major | | | | what a mortgage would be this week plus a week |
| mortgage products for the last few months. As we | | | | and a month ago. |
| can see while the 30 Year rate has fallen both the 5 | | | | August 28th |
| year and the 1 year arm have for the most part held | | | | 30-yr $1251.01 |
| steady. This brings the difference between the 30 | | | | 15-yr $1680.15 |
| Year rate and the 5 year and 1 year arm back to | | | | 5-yr ARM $1202.96 |
| roughly normal levels. The 15 year mortgage rate has | | | | 1-yr ARM $1114.33 |
| been falling as well over the last month but not as | | | | August 21st |
| much as the 30 year rate. | | | | 30-yr $1260.19 |
| August 28,2008 | | | | 15-yr $1687.71 |
| 30-yr 6.40 15-yr 5.93 5-yr ARM 6.03 1-yr ARM 5.33 | | | | 5-yr ARM $1197.81 |
| August 21,2008 | | | | 1-yr ARM $1109.36 |
| 30-yr 6.47 15-yr 6.00 5-yr ARM 5.99 1-yr ARM 5.29 | | | | July 24th |
| August 14,2008 | | | | 30-yr $1281.28 |
| 30-yr 6.52 15-yr 6.07 5-yr ARM 6.02 1-yr ARM 5.18 | | | | 15-yr $1707.22 |
| August 7,2008 | | | | 5-yr ARM $1219.75 |
| 30-yr 6.52 15-yr 6.10 5-yr ARM 6.05 1-yr ARM 5.22 | | | | 1-yr ARM $1134.32 |
| July 31,2008 | | | | So what is going to happen over the next few |
| 30-yr 6.52 15-yr 6.07 5-yr ARM 6.07 1-yr ARM 5.27 | | | | months? It's always hard to predict but here is my |
| While 30 mortgage rates have fallen they are still | | | | guess. I think rates will hold steady or fall a bit over the |
| above what we saw a few months ago when | | | | next two months. I am expecting rates to come down |
| mortgage rates where hovering around 6.0. So while | | | | a bit after the election. Of course a lot could happen |
| mortgage rates are relatively high I still think this is a | | | | between now and then. If the market runs into more |
| pretty good sign. Why? Basically mortgage rates have | | | | problems I would expect rates to increase. Why? The |
| fallen in spite of the fact that recently the FED has | | | | Fed has their hands tied behind the back they cannot |
| decided not to lower rates. Does this mean that banks | | | | lower the Fed rate too many more times. |