Bad Economic News = Mortgage Opportunities For You

Despite the fact that mortgage rates have been relatively low over the last few months, the clearly love being in the lime light.  With the release of the economic reports of last week, indicating a continued bleak outlook, have spurred the mortgage rates and industry leaders that determine them into action.  So, last week in an attempt recapture lost headline glory, with bad economic news in hand and already at low numbers, Mortgages Rates got into the news again by falling to a new all time historical low.

The 30 year rate fell from 4.75 to 4.69 last week.  Three weeks ago the 30 year rate was sitting at 4.72. What’s interesting is that over the last month, when a lot of people have been talking about how rates are about to start rising,  instead they are breaking records with mortgage rate lows.  We mostly concentrate on the 30 year rate because it is the most widely used mortgage product.  Additionally, with the 30 year rate hitting an all time low the 3 other major mortgage products all reached new all time lows as well. The 15 year dropped from 4.20 to 4.13.  As well as, the 5 and 1 year arms dropped from 3.89 to 3.84 (5 year arm) and 3.82 to 3.77 (1 year arm). Below 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 looking at mortgage rates it’s also helpful to look at mortgage payments. We took today’s rates and translated them into a mortgage payment for a 200k loan. We also did 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 low on May 13th today a payment on a 200k loan is about $30 less a month for a drop of a little less than 3 percent.

So what is going to happen over the next few months? If we knew that we might be working for living.  However,  its certainly possible rates could fall a little more and we could break some new records with mortgage rates.   Regardless of what happens – please feel free to contact us here at Asheville 4 Seasons Realty – with all your questions and concerns regarding real estate.

• Bookmark on Delicious
• Digg this post
• Recommend on Facebook
• Share on Linkedin
• share via Reddit
• Share with Stumblers
• Tweet about it
• Subscribe to the comments on this post
• Tell a friend

This entry was posted on Wednesday, July 7th, 2010 at 10:44 am and is filed under Buyers, North Carolina, Real Estate, Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.