After moving down for the last 3 weeks mortgage rates finally started to move up. The 30 year rate jumped from 4.78 (equaling the all time low) to 4.84. This is the highest the 30 year rate has been since April 9th. The other 3 major mortgage rates rose this week as well. The 15 year rate moved up slightly from 4.48 to 4.51. The 5 year arm moved from 4.80 to 4.90 pushing it farther above the 30 year rate. It's been sometime since the 5 year arm was below the 30 year fixed rate. It looks like the 5 year ARM is becoming more of a relic for the conventional residential buyer. The 1 year arm kept mostly steady rising from 4.77 to 4.78. Below are rates for the major mortgage products for the last few weeks. We also looked at rates from November 6, 2008 (6 months ago).
May 07, 2009
30-yr 4.84 15-yr 4.51 5-yr ARM 4.90 1-yr ARM 4.78
Apr 30, 2009
30-yr 4.78 15-yr 4.48 5-yr ARM 4.80 1-yr ARM 4.77
Apr 23, 2009
30-yr 4.80 15-yr 4.48 5-yr ARM 4.85 1-yr ARM 4.82
Apr 16, 2009
30-yr 4.82 15-yr 4.48 5-yr ARM 4.88 1-yr ARM 4.91
Apr 09, 2009
30-yr 4.87 15-yr 4.54 5-yr ARM 4.93 1-yr ARM 4.83
Nov 06, 2008
30-yr 6.20 15-yr 5.88 5-yr ARM 6.19 1-yr ARM 5.25
In addition to mortgage rates we always like to look at mortgage payments. We took today's rates and converted them into a mortgage for a 200k loan. We did the same thing with rates from last week and rates from November
6th, 2008.
May 07
30-yr $1054.17
15-yr $1531
5-yr ARM $1061.45
1-yr ARM $1046.91
Apr 30
30-yr $1046.91
15-yr $1527.94
5-yr ARM $1049.33
1-yr ARM $1045.7
Nov 06
30-yr $1224.93
15-yr $1674.77
5-yr ARM $1223.64
1-yr ARM $1104.4
Compared to last week a mortgage payment on a 200k loan would be $7.26 higher a month. This pales in comparison to the difference between today's payment and what the payment would be on the same loan 6 months ago. Compared to November 6, 2008 monthly payments today are $170.76 less or down 13.94 percent.
It's hard to know how much longer 30 year mortgage rates will stay below 5 percent. Last week the government auction of 30 year bonds was met with a cool reception. If the US is not able to auction off its increasing debt we should start to see higher mortgage rates. Add this to the general perception that inflation is coming because of the massive stimulus plans that have been enacted along with an improving economy its unlikely mortgage rates will stay this low much longer.
Although some are seeing signs of improvement in the economy lenders have remained extremely strict in their lending practices. People that would have easily obtained a loan at most times in the last 20 years are being routinely denied. Therefore if you are considering getting a loan in the next few months it's important to start researching your credit score and talking to different banks or mortgage brokers early on in the home buying process.
May 07, 2009
30-yr 4.84 15-yr 4.51 5-yr ARM 4.90 1-yr ARM 4.78
Apr 30, 2009
30-yr 4.78 15-yr 4.48 5-yr ARM 4.80 1-yr ARM 4.77
Apr 23, 2009
30-yr 4.80 15-yr 4.48 5-yr ARM 4.85 1-yr ARM 4.82
Apr 16, 2009
30-yr 4.82 15-yr 4.48 5-yr ARM 4.88 1-yr ARM 4.91
Apr 09, 2009
30-yr 4.87 15-yr 4.54 5-yr ARM 4.93 1-yr ARM 4.83
Nov 06, 2008
30-yr 6.20 15-yr 5.88 5-yr ARM 6.19 1-yr ARM 5.25
In addition to mortgage rates we always like to look at mortgage payments. We took today's rates and converted them into a mortgage for a 200k loan. We did the same thing with rates from last week and rates from November
May 07
30-yr $1054.17
15-yr $1531
5-yr ARM $1061.45
1-yr ARM $1046.91
Apr 30
30-yr $1046.91
15-yr $1527.94
5-yr ARM $1049.33
1-yr ARM $1045.7
Nov 06
30-yr $1224.93
15-yr $1674.77
5-yr ARM $1223.64
1-yr ARM $1104.4
Compared to last week a mortgage payment on a 200k loan would be $7.26 higher a month. This pales in comparison to the difference between today's payment and what the payment would be on the same loan 6 months ago. Compared to November 6, 2008 monthly payments today are $170.76 less or down 13.94 percent.
It's hard to know how much longer 30 year mortgage rates will stay below 5 percent. Last week the government auction of 30 year bonds was met with a cool reception. If the US is not able to auction off its increasing debt we should start to see higher mortgage rates. Add this to the general perception that inflation is coming because of the massive stimulus plans that have been enacted along with an improving economy its unlikely mortgage rates will stay this low much longer.
Although some are seeing signs of improvement in the economy lenders have remained extremely strict in their lending practices. People that would have easily obtained a loan at most times in the last 20 years are being routinely denied. Therefore if you are considering getting a loan in the next few months it's important to start researching your credit score and talking to different banks or mortgage brokers early on in the home buying process.
Ki Gray
Ki created a site escapesomewhere.com that has information on the Austin market. It also has a mortgage rates widget and a free mortgage calculator.
View all articles by Ki Gray