| I have been tracking mortgage interest rates for the | | | | mortgage calculator we ran the numbers on a 200k |
| last few months. Its always more interesting when | | | | loan. We looked at what a mortgage would be this |
| there are drastic changes. This week we saw some | | | | week, last week and July 24th. |
| of the largest changes we have seen this year. This is | | | | September 11th |
| of course in response to the Fannie Mae and Freddie | | | | 30-yr $1190.11 |
| Mac takeover. The 30 year mortgage rate dropped | | | | 15-yr $1638.41 |
| from 6.35 to 5.93 this week. What makes this more | | | | 5-yr ARM $1182.43 |
| pronounced is that rates have been coming down the | | | | 1-yr ARM $1099.45 |
| last month back on July 24th rates were at 6.63. The | | | | September 4th |
| 15 year mortgage came down as well this week falling | | | | 30-yr $1244.47 |
| from 5.90 to 5.54. We did not see as much movement | | | | 15-yr $1676.92 |
| in adjustable rate mortgages. 5 Year arms came | | | | 5-yr ARM $1195.24 |
| down to 5.87 from 5.97 last week. 1 Year arms | | | | 1-yr ARM $1092.05 |
| actually increased from 5.15 to 5.21. Below we listed | | | | July 24th |
| out the rates for the major mortgage products for the | | | | 30-yr $1281.28 |
| last few weeks. | | | | 15-yr $1707.22 |
| September 11, 2008 | | | | 5-yr ARM $1219.75 |
| 30-yr 5.93 15-yr 5.54 5-yr ARM 5.87 1-yr ARM 5.21 | | | | 1-yr ARM $1134.32 |
| September 4, 2008 | | | | Looking at 30 Year rates we can see a pretty |
| 30-yr 6.35 15-yr 5.90 5-yr ARM 5.97 1-yr ARM 5.15 | | | | substantial drop. Since July 24th the payment has |
| August 28, 2008 | | | | dropped from $1281.28 to $1190.11 (a drop of 7%). |
| 30-yr 6.40 15-yr 5.93 5-yr ARM 6.03 1-yr ARM 5.33 | | | | Additionally, based on todays rate the 5 year arm |
| August 21, 2008 | | | | option seems pretty pointless since it offers a very |
| 30-yr 6.47 15-yr 6.00 5-yr ARM 5.99 1-yr ARM 5.29 | | | | small savings compared to the 30 year rate. |
| August 14, 2008 | | | | So what should we expect next week? Unless banks |
| 30-yr 6.52 15-yr 6.07 5-yr ARM 6.02 1-yr ARM 5.18 | | | | start to get nervous again I think rates might move |
| August 7, 2008 | | | | down a little more. There are rumors that rates are |
| 30-yr 6.52 15-yr 6.10 5-yr ARM 6.05 1-yr ARM 5.22 | | | | going to come down to 5.5. I think after next week the |
| So how is all of this going to be reflected in the | | | | effects of the Fannie Mae and Freddie Mac will have |
| mortgage payments one will be paying. Using our free | | | | moved into the market. |