Current Mortgage Rates

Saturday, September 06, 2008



Keep in mind that the interest rates that get all the headlines - the short-term bank lending rates set by the Fed - are not the same as the long-term mortgage rates set by the bond market. Interest rates on the benchmark 10-year Treasury bond actually fell slightly Wednesday after the Fed voted to raise rates. Some analysts suggest that's because the bond market - sensing for some time that rates were headed higher - has already made its move and pushed rates higher. So the prospect of a slow and steady rise in short-term rates to around 3 percent - especially since Fed Chairman Greenspan has all but promised as much - have already been factored in to current long-term rates like home mortgage loans.

Interest rates are volatile and move up or down for the strangest reasons just like the stock market. If you want to move fast and follow interest rates, you may want to do the following:
  1. Find out all the economic news being released over the next two weeks. Check out this month's economic calendar.
  2. Make a list of news that is most important to interest rates? inflation, industrial production, etc.
  3. Follow bond- or mortgage-backed prices on a daily basis. These rates influence mortgage rates.
  4. Follow mortgage interest rates on a daily basis. Bookmark web sites or obtain rates via e-mail.
  5. PRAY and don't be too greedy!
  6. In general, Fridays and three-day weekends are bad for interest rates. This is because traders hate uncertainty. In many cases, traders close out positions before a weekend, which often means that they have to sell bonds which causes rates to go up.
  7. Bookmark interest-rate trends. Once you lock in the rate, you need to make sure that you are approved and closed before the contract expires. If you have a floating lock, make sure that you keep your eye on the market to see if it has gone down. A lock will cost you money.
Like a mortgage, shop around for the terms and the cost. Some lenders will charge you even if you don't close on the mortgage with an up-front fee. Others charge a fee at settlement. It could be a flat fee, a percentage of the mortgage amount, a fraction of a percentage point or a higher interest rate. The cost could vary depending on the lock, the options you choose and the mortgage program.




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Current Mortgage Rates*

Loan Type
National Average
30-yr. fixed6.38%
30-yr. fixed jumbo7.00%
15-yr. fixed5.88%
15-yr. fixed jumbo6.50%
7/1 ARM6.25%
5/1 ARM6.00%
3/1 ARM5.88%
1-yr. ARM6.00%
1-yr. LIBOR ARM5.50%
10/1 ARM7.88%
*Mortgage Rates Updated: 09/04/2008