This entry was posted on Friday, February 22nd, 2008 at 3:33 pm and is filed under Mortgage Rates. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
Sacramento Mortgage Rate Update: A Tug of War
It was another violent tug of war for mortgage rates last week. Renewed inflation concerns tugged hard on one end of the rope and recession anchored the other. Freddie Mac checked in with their weekly survey, reporting average 30 year fixed rates at a little over 6% with .6 points.
For that same half point, note that you can now get a 5/1 arm at 5.32%. The yield curve has steepened again as the short maturities respond to the Fed cuts and the long end stubbornly refuse. This 5/1 arm is not junk, it’s a A paper loan that makes a lot of sense for those shorter expected holding periods on their homes. The difference in rate could save you $10k over 5 years. Keep it in mind.
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