In this section we look at
the latest news from the mortgage industry including latest
interest rates, what's happening with sub prime mortgage
borrowers, appreciation & depreciation of real estate
in the United States, changes in the Adjustible Rate Mortgages
and the effects of these on individual consumers.
Spread
Widens between 30 Year Fixed & 5 Year ARM
(February
28th, 2008)
The spread between the 30 year fixed mortgage
& the 5 year Adjustable Rate mortgage continues to widen
in this commodities bull market where the price of oil,
gold, grains & basic materials continues to go through
the roof. In Bankrate.com's rate survey for the week of
Monday February 25th, 2008 the 5/1 hybrid ARM stood at 5.77%
while the rate for 30 year fixed mortgages stood at 6.37%.
At the beginning of 2008, both mortgage products stood at
roughly 6.14%. This means the 5/1 hybrid ARM is becoming
cheaper for investors to borrow and with which to finance
their homes.
Mortgage
Interest Rates Fall 10 Basis Points to 6.07%
(January
3rd, 2008)
Mortgage interest rates fell to their lowest
levels in 4 weeks thanks to the bad news revolving around
the economy, the subprime mess in the mortgage market as
well as high inflation in oil, gas, groceries & commodities.
The average interest rate on a 30 year fixed term mortgage
fell 10 basis points from 6.17% to 6.07% (Source: Freddie
Mac). The average origination fees and discount points of
0.5% remained unchanged from the last survey conducted by
Freddie Mac. The average mortgage interest rate on a 30
year fixed term at this time last year was 6.18%.
