30 Year Mortgages Continue To Decline

Jan 25th, 2008 @ 6:09 PM by Alden Smith

As reported earlier, 30 year mortgages have been taking a hit in the market.  This usually stable mortgage has hit its lowest level in four years.  The market is hoping that these low rates will help spur the market.  Today on Loan.com, interest rates were at 5.79% for 30 year fixed rates.  (A little tip here – when ever you look at these graphs, it is wise to clear your cache to insure that you are getting the correct data.)

Last week, Freddie Mac reported interest rates at 5.69%.  This week, they have fallen to an average of 5.48%.  Economists are blaming this on bad news reported on the weakening economy.  Combine that with the Fed dropping key interest rates by .75, and you can see why things are this way.  The Fed made the largest cut that it has in 20 years, hoping to stimulate the economy.  Economists are also looking for the Fed to make further cuts.

Other mortgage types have also fallen off this past week, a sure sign that the economy has a bit of an infection.  Fifteen year rates dropped to 5.13% from 5.4%, and one year ARM’s dropped to 4.99 percent, down from 5.26 percent.  Not looking good…

Other News

Countrywide keeps getting dinged, especially in California and New York.  The beleaguered company, recently acquired by Bank of America, is getting hit by class action suits because the people bearing suit feel that underwriter’s should have kept Countrywide more accountable in reporting.  A ton of cash was lost by investors, and a lot of New Yorkers were put out of their homes. One of the biggest complaints seems to come from investment firms that have a lot of huge government pension funds that invested in Countrywide securities.  Has the golden parachute opened yet?

One Response to “30 Year Mortgages Continue To Decline”

1. fha guru says:

   January 29, 2008 at 7:07 pm

   FHA loans have the lowest rates availible on 30 year fixed programs.
   For more information see
   http://www.onlinefhaservices.com