Rates on mortgages rising generally held steady now. The 30 yr rate dropped from 5.12 to.10. Rates are still at historic lows. The rates the past month have got all been below anything we come across over the last Four decades since we started tracking weekly rates on mortgages rising. The 15 year rate held steady at 4.8. The 5 year arm rose from 5.24 to 5.27 as well as the 12 months arm dropped from 4.92 to 4.90. What the numbers below don't reflect is the fact that rates mid week were a little higher midweek. But towards the end each week they had fallen. Underneath are rates during the last few weeks.
Jan 29, 2008 30-yr 5.10 15-yr 4.80 5-yr ARM 5.27 1-yr ARM 4.90
Jan 22, 2008 30-yr 5.12 15-yr 4.80 5-yr ARM 5.24 1-yr ARM 4.92
Jan 15, 2008 30-yr 4.96 15-yr 4.65 5-yr ARM 5.25 1-yr ARM 4.89
Jan 08, 2008 30-yr 5.01 15-yr 4.62 5-yr ARM 5.49 1-yr ARM 4.95
Dec 31, 2008 30-yr 5.10 15-yr 4.83 5-yr ARM 5.57 1-yr ARM 4.85
If you're planning on putting 20% along the 5 year arm and also the Twelve months arm are pretty pointless. The five year arm is across the Thirty year set rate. The 12 months arm is below the 30 year fixed but won't offer enough savings to be definitely worth the tradeoff of forgoing locking in at historic lows. We view a trend recently where on some properties banks are allowing borrowers to have 10 % down for a 5 or 12 months arm but they are requiring Twenty percent for the 30 yr loan. I don't know why banks are favoring arm's since that is what got them into this mess. Ok so as well as looking at rates lets look at mortgage payments. We looked at a home loan payment according to today's rates for any 200k loan. We also did exactly the same thing taking a look at rates from 14 days ago (that was all time low point for that Thirty year fixed interest rate mortgage). We also viewed rates from 2 months ago.
Jan 29 30-yr 1085.89 15-yr 1560.82 5-yr ARM 1106.88 1-yr ARM 1061.45
Jan 15 30-yr 1068.75 15-yr 1545.36 5-yr ARM 1104.4 1-yr ARM 1060.23
November 20th 30-yr $1204.24 15-yr $1658.67 5-yr ARM $1182.43 1-yr ARM $1109.36
Even as we are able to see although a mortgage payment is a little less Fourteen days ago in general rates and home loan payments haven't changed very much. But we have been still seeing substantial savings from 2 months ago.
So what is our advice. It must be pretty obvious though rates at all time lows enough time to refinance is. Additionally, if you're currently seeking a mortgage I'd personally lock in home mortgage sooner rather than later.
In general there's still more of a chance of rates going up over the next month than down. Rates simply don't have very much room to fall. So probably we have to see rates hold even or rise over the the following month. In addition, there's a risk that rates could rise rapidly over the next A few months if your economy improves.
