Jul. 2, 2008 - Mortgage Interest Rates Continue to Move Up
After rising drastically last week fixed mortgage interest rates moved up slightly this week. 30 Year notes moved from 6.42 to 6.45 and 15 Year notes moved from 6.02 to 6.04. ARMS on the other hand rose a decent amount. 5 Year Arms rose from 5.89 to 5.99 while 1 Year Arms rose from 5.19 to 5.27. Below are mortgage rates for the last few weeks.
June 26,2008
30-yr 6.45 15-yr 6.04 5-yr ARM 5.99 1-yr ARM 5.27
June 19,2008
30-yr 6.42 15-yr 6.02 5-yr ARM 5.89 1-yr ARM 5.19
June 12,2008
30-yr 6.32 15-yr 5.93 5-yr ARM 5.70 1-yr ARM 5.09
June 5,2008
30-yr 6.09 15-yr 5.65 5-yr ARM 5.51 1-yr ARM 5.06
May 29,2008
30-yr 6.08 15-yr 5.66 5-yr ARM 5.62 1-yr ARM 5.22
May 22,2008
30-yr 5.98 15-yr 5.55 5-yr ARM 5.61 1-yr ARM 5.24
Using our free mortgage calculator lets run the numbers on a 200k loan based on todays rates. We also put in what the mortgage would be a week and a month ago.
June 26th
30-yr $1257.56
15-yr $1692.03
5-yr ARM $1197.81
1-yr ARM $1106.88
June 19th
30-yr $1253.6
15-yr $1689.87
5-yr ARM $1184.99
1-yr ARM $1096.98
May 29th
30-yr $1209.4
15-yr $1651.19
5-yr ARM $1150.68
1-yr ARM $1100.69
So looking at the numbers above one would have saved almost $50 by getting a 30 Year loan a month ago compared to today. In contrast a mortgage on a 1 Year Arm has remained relatively constant. Why Banks would want to promote 1 Year Arms is anyones guess. Based on the other recent decisions by banks it would not be a bad assumption to assume banks have no idea what they are doing this point.
At this point getting a 5 Year Loan doesnt really seem worth it compared to getting a 30 Year loan since the cost savings is not that high (5%). On the other hand if you plan on keeping the property for a short period of time a 1 Year loan seems attractive considering the cost savings(12%).
Ki lives in Austin. His website has information on Austin real estate along with search of the Austin MLS and market stats on his Austin real estate blog.
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