Rates are actually relatively low during the last month. This week, they may be in news reports by falling to a new in history historical low.
The 30 yr rate fell from 4.75 to 4.69 immediately. Fourteen days ago the 30 yr rate was sitting at 4.72. What's interesting is the fact that over the last month, each time a lots of individuals have been referring to how rates are going to start rising, we have been instead breaking records with type of loan lows. We mostly focus on the 30 year rate which is probably the most popular mortgage product. But additionally towards the 30 yr rate hitting a record low the other major mortgage products all reached new in history lows too. The 15 year dropped from 4.20 to 4.13. The five and One year arms dropped from 3.89 to 3.84 (5 year arm) and 3.82 to three.77 (12 months arm). Underneath are rates from the weeks from May 27, 2010 to Jun 24, 2010
Jun 24, 2010 30-fixed 4.69 15-fixed 4.13 5 ARM 3.84 1 ARM 3.77
Jun 17, 2010 30-fixed 4.75 15-fixed 4.20 5 ARM 3.89 1 ARM 3.82
Jun 10, 2010 30-fixed 4.72 15-fixed 4.17 5 ARM 3.92 1 ARM 3.91
Jun 03, 2010 30-fixed 4.79 15-fixed 4.20 5 ARM 3.94 1 ARM 3.95
May 13, 2010 30-fixed 4.93 15-fixed 4.30 5 ARM 3.95 1 ARM 4.02
So in addition to considering home loan rates it's also helpful to look at home loan payments. We took today's rates and translated them into a mortgage payment to get a 200k loan. We also did exactly the same things with rates from May 13th.
Jun 24 30-year $1036.07 15-year $1492.43 5-year ARM $936.47 1-year ARM $928.5
May 13 30-year $1065.1 15-year $1509.62 5-year ARM $949.07 1-year ARM $957.13
So although rates were already pretty have less May 13th today a payment on the 200k loan is approximately $30 less monthly for any drop of an little under 3 %.
Precisely what will probably happen over the next several months? Its certainly possible rates could fall a little more and that we could break new records with home loan rates. I might be very impressed if rates fell below 4.25 unless the economy went into a significant tailspin. Conversely once the economy recovers rates should increase rapidly. Plus inflation spirals unmanageable I saw rates jumping to the double digits.
