Jun. 29, 2007 - 30 year mortgage rates dip

Special mortgage program for union members

After a month and a half of rising mortgage rates, for the second consecutive week rates on 30 year mortgages dipped 2 basis points, to 6.74 percent. A basis point is one-hundredth of a percentage point.  This slide in the  rate puts interest costs just about at the same place they were a year ago, when the average 30-year fixed mortgage rate was 6.71 percent. Bankrate.com reports from mid-May to mid-June the average rate on a 30-year fixed climbed from 6.32 percent to 6.84 percent in four weeks. This week's decrease is a long way from the middle of March's 30-year mortgage rate at 6.16 percent.

Realty Times warns, "As always, though, consumers need to consider points charged by lenders as well as other fees to determine the real cost of loans."   A point is 1 percent of the loan amount. And last week, lenders were charging 0.5 points.  The average 15-year fixed rate fell 5 basis points, to 6.4 percent.

The average jumbo 30-year fixed, for larger loans, fell 3 basis points, to 6.96 percent. Adjustable-rate mortgages went in different directions. The popular 5/1 ARM fell 11 basis points, to 6.47 percent, while the one-year ARM rose 5 basis points, to 6.23 percent.

Union members my be eligable for a special mortgage program that could save on fees and offers free strike, disability and unemployment benefits. For information regarding the program, contact me here.