| Up up and away. Mortgage interest rates continue on | | | | 15-yr $1639.47 |
| their upward trajectory. 30 Year mortgage rates went | | | | 5-yr ARM $1149.41 |
| from 6.32 to 6.42. 15 year notes rose from 5.93 to 6.02 | | | | 1-yr ARM $1103.16 |
| and 5 year arms rose almost 20 basis point going | | | | Mortgage payments on most of the mortgage |
| from 5.7 to 5.89. 1 Year arms rose this week from | | | | products went up quite a bit over the last month. |
| 5.09 to 5.19. But unlike the other mortgage products | | | | Looking at a 30 year note the mortgage on a 200k |
| (which are higher) 1 Year Arms remain about where | | | | loan has increased $57.10 or about 4.8 percent in a little |
| they were a month ago. As we have talked about for | | | | over a month. In fact the only mortgage product to fall |
| the last several months since the FED is no longer | | | | is the 1 Year Arm ($6.18 or about 0.5 percent). Why |
| cutting rates we can expected rates to rise throughout | | | | banks would want to push ARM which is the very |
| the summer. The only question is when they will stop | | | | loan product that caused all the problems in the first |
| rising and start stabilizing. Below is the rates for the last | | | | place is anyones guess. Although I typically avoid |
| month. | | | | ARMs the cost savings on a 1 or 5 Year ARM is hard |
| June 19,2008 | | | | to ignore. That said I would only look at ARMs if you |
| 30-yr 6.42 15-yr 6.02 5-yr ARM 5.89 1-yr ARM 5.19 | | | | think their is a reasonable chance you will sell your |
| June 12,2008 | | | | property in that time frame. The general expectation is |
| 30-yr 6.32 15-yr 5.93 5-yr ARM 5.70 1-yr ARM 5.09 | | | | that rates should be higher and not lower in a few |
| June 5,2008 | | | | years. |
| 30-yr 6.09 15-yr 5.65 5-yr ARM 5.51 1-yr ARM 5.06 | | | | So the question remains where are rates going to be |
| May 29,2008 | | | | in the next month. While I was fairly confident that |
| 30-yr 6.08 15-yr 5.66 5-yr ARM 5.62 1-yr ARM 5.22 | | | | rates would rise this month I am not as sure what will |
| May 22,2008 | | | | happen in a month. If the FED continues to avoid |
| 30-yr 5.98 15-yr 5.55 5-yr ARM 5.61 1-yr ARM 5.24 | | | | anymore rate cuts I would expect to see mortgage |
| May 15, 2008 | | | | rates at about the same level or higher. Banks have |
| 30-yr 6.01 15-yr 5.60 5-yr ARM 5.57 1-yr ARM 5.18 | | | | been dealing with massive losses from foolish bets on |
| Using a mortgage calculator lets see how the | | | | subprime loans and are looking to make up for these |
| increasing rates have changed the payment on a 200k | | | | losses through higher mortgage rates. |
| loan. | | | | Another change occuring with loans is a limit on the |
| June 19th | | | | number of investment properties an individual can |
| 30-yr $1253.63 | | | | recieve a loan on. It looks like most banks are limiting |
| 15-yr $1689.87 | | | | the number of investment property loans per individual |
| 5-yr ARM $1184.99 | | | | to 4. This should obviously have a negative effect on |
| 1-yr ARM $1096.98 | | | | investment properties. I also expect to see more cash |
| May 15th | | | | offers from investors looking to pick up properties at |
| 30-yr $1196.53 | | | | currently depressed prices. |