| After several weeks of staying relatively flat | | | | 1-yr ARM $1080.98 |
| mortgage interest rates jumped up this week. 30 Year | | | | May 8th, 2008 |
| mortgage went from 6.09 to 6.32. 15 Year Mortgage | | | | 30-yr $1205.53 |
| moved from 5.65 to 5.93. 5 Year rates went from 5.51 | | | | 15-yr $1644.79 |
| to 5.70. The only rate that was somewhat stable was | | | | 5-yr ARM $1157.00 |
| 1 Year Arms which went up from 5.06 to 5.09. Two | | | | 1-yr ARM $1109.36 |
| weeks ago we predicted that rates would increase | | | | So for a 30 Year Mortgage on a 200k loan the |
| over the summer and they seem to be doing exactly | | | | mortgage payment went up about $30 or about 2.5 |
| that. | | | | percent. The mortgage on a 15 Year mortgage also |
| June 12,2008 | | | | went up about $30. What is weird is rates on 1 Year |
| 30-yr 6.32 15-yr 5.93 5-yr ARM 5.70 1-yr ARM 5.09 | | | | ARMs stayed about the same and are actually down |
| June 5,2008 | | | | from a month ago. This makes no sense. Banks are |
| 30-yr 6.09 15-yr 5.65 5-yr ARM 5.51 1-yr ARM 5.06 | | | | dealing with foreclosures that are mostly coming from |
| May 29,2008 | | | | borrowers that got 5 and 1 Year ARMs. Basically |
| 30-yr 6.08 15-yr 5.66 5-yr ARM 5.62 1-yr ARM 5.22 | | | | when the ARMs reset borrowers are frequently |
| May 22,2008 | | | | unable to make the higher payments and wide up |
| 30-yr 5.98 15-yr 5.55 5-yr ARM 5.61 1-yr ARM 5.24 | | | | facing foreclosure. One would think banks would be |
| May 15, 2008 | | | | discouraging these high risk loans. I would like to think |
| 30-yr 6.01 15-yr 5.60 5-yr ARM 5.57 1-yr ARM 5.18 | | | | the banks know something I don't. But looking at their |
| May 8, 2008 | | | | foolish behavior over the last few years (giving loans |
| 30-yr 6.05 15-yr 5.60 5-yr ARM 5.67 1-yr ARM 5.29 | | | | to everyone that walked in the door from 2004-2006) |
| Using out free mortgage calculator lets see what the | | | | its a distinct possibility they are just plain foolish. So |
| rate increase mean for the payments on a 200k | | | | again this week 1 Year ARMs look attractive. Just |
| mortgage. We calculated out the mortgage payments | | | | remember in a year your rate and mortgage could be |
| based on today's mortgage interest rates and rates a | | | | higher so it would be wise to have some cash on the |
| week and a month ago. | | | | side to pay a potentially higher mortgage. And I would |
| June 12th | | | | expect rates to be higher one year from today. |
| 30-yr $1240.55 | | | | So what would I expect to happen over the rest of |
| 15-yr $1680.15 | | | | the summer. First off I don't see rates going down. The |
| 5-yr ARM $1160.80 | | | | FED has given numerous signals they don't plan to |
| 1-yr ARM $1084.67 | | | | lower rates. Will rates continue to go up? I am not sure. |
| June 5th | | | | I expected rates to creep up over the next month |
| 30-yr $1210.69 | | | | instead of jumping up this month. So I hope rates stay |
| 15-yr $1650.11 | | | | relatively flat but they could go higher over the next |
| 5-yr ARM $1136.83 | | | | month. |