I wrote a post a couple of days ago about how interest rates were bobbing around erraticly. If you look to the left you will see the interest rate graph with the current drop. Hopefully the market will stabilize and fear in the market will subside some. This could be great news but we need to give it a few weeks to see how the market asbsorbs the information as it is it’s own beast.
From Seth Harris at Northwest Metro Mortgage,
Many of you have probably heard that major mortgage lender, Fannie Mae and Freddie Mac were just taken over by the government this past weekend. This has stabilized the mortgage market in the eyes of the investors who buy their loans. As a result, rates have dropped today pretty substantially. This is as low as they’ve been in about 9 months. It’s hard to foresee where they will go from here after the government take over but we’ll keep an eye on them.
Not more than a couple weeks ago, rates were a full 1% higher. This dramatically changes the mortgage payment and buying power of your clients.
Current Rates:
| Loan Program |
Loan Amount |
Interest Rate |
Points |
APR |
| 30 Year Fixed |
$417,000 |
5.50% |
1 |
5.677% |
| 15 Year Fixed |
$417,000 |
5.250% |
1 |
5.495% |
| 5/1 ARM |
$417,000 |
5.375% |
1 |
5.588% |
