Mortgage Interest Rates Nudge Down a Little

Before we talk about what happened with mortgageJuly 31th, 2008
rates this week lets do a quick recap of what30-yr $1266.76
happened last week. Last week mortgage interest15-yr $1695.28
rates made a sudden jump over the previous week.5-yr ARM $1208.11
For the entire month of June and July 30 year1-yr ARM $1106.88
mortgage interest rates only fluctuated from 6.09 toJuly 24th, 2008
6.45. Then last week 30 year mortgage rates30-yr $1281.28
suddenly jumped from 6.26 to 6.63. At the time we15-yr $1707.22
predicted that rates would probably fall this week5-yr ARM $1219.75
because usually after big spikes in mortgage rates1-yr ARM $1134.32
there is a bit of a correction. We saw exactly thatJuly 17th, 2008
with all four of the major mortgage products falling, but30-yr $1232.73
not back to their levels from two weeks ago. 30 Year15-yr $1664.03
rates fell from 6.63 to 6.52. The only mortgage product5-yr ARM $1173.5
to not fall substantially this week was the 1 Year ARM.1-yr ARM $1085.89
Last week the 1 Year rate rose from 5.10 to 5.49. ThisSo it looks like for now rates are still relatively high. The
week the 1 Year mortgage rate lost most of that gainonly mortgage product that remains relatively low is
falling to 5.27.the 1 year mortgage rate. Comparing it to the 30 Year
Below are rates for the major mortgage products formortgage rate at 6.52 the 1 Year mortgage rate
the last month.comes in at 5.27. For a 200k mortgage the mortgage
July 31, 2008payment with a 30 Year loan would be 1266.76. For a
30-yr 6.52 15-yr 6.07 5-yr ARM 6.07 1-yr ARM 5.271 Year Arm the mortgage payment would be 1106.88
July 24, 2008or about 12.6% less. While I usually avoid Arm's that is
30-yr 6.63 15-yr 6.18 5-yr ARM 6.16 1-yr ARM 5.49a pretty substantial different.
July 17, 2008The only problem with 1 Year Arm's is that their is no
30-yr 6.26 15-yr 5.78 5-yr ARM 5.80 1-yr ARM 5.10guarantee mortgage rates will be less in one year. And
July 10, 2008with all the volatility in the mortgage markets right now
30-yr 6.37 15-yr 5.91 5-yr ARM 5.82 1-yr ARM 5.17they could be somewhat higher. Looking forward its
July 3, 2008hard to tell what mortgage rates are going to do over
30-yr 6.35 15-yr 5.92 5-yr ARM 5.78 1-yr ARM 5.17the next month. The FED's refusal to lower rates
Ok so mortgage interest rates tell part of the story.would tend to push mortgage interest rates up but
But how does this translate into a mortgage payment.since mortgage rates rose so much over the last two
Using our free mortgage calculator lets translate theweeks we can only hope that for the time being
mortgage interest rates over the last few weeks intobanks are satisfied with the current rates.
a mortgage payment for a 200k loan.