Home Mortgage Interest Rates

It has been a while since I last provided an interest rate chart on this blog. Plus I was curious to see what the graph would look like. I knew rates were lower than earlier this year, but it’s always nice to see it plotted out.

As you can see in the chart below, after peaking at about 5.60% in the first week of June this year, the 30 year fixed rate has been hovering very close to 5.00%. The 15 year mortgage is also on a similar trend but at a slightly lower rate.

Home Mortgage Interest Rates

The good news is rates remain at historically low levels. The graph above is based on an average weekly mortgage rates provided by Freddie Mac. Of course the exact rate you receive is dependent on many factors.

Mortgage Interest Rates

Its hard to believe but 2009 is almost half over. So, just out of curiosity I took a look at how interest rates have done for the first half of this year. What becomes apparent as you review these charts is that rates fell for a great portion of the year but have been on an upswing of sorts recently. Of course no one knows what will happen in the future but it is important to remember that mortgage interest rates remain at historically low levels.

30-yr-fixed-mortgage-rate

15-yr-fixed-mortgage-rate

5-1-arm-mortgage-rate

1yr-arm-mortgage-rate

Data source: Freddie Mac Weekly Primary Mortgage Market Survey

Interest Rates to Stay Low for “Extended Period”

The Federal Open Market Committee met today and decided to keep the Federal Funds Rate between 0% and 0.25%. Below is a quote from a very good analysis on Businessweek:

The FOMC stuck to its target range for the federal funds rate at 0% to 0.25%, and signaled that rates are likely to remain at exceptionally low levels “for an extended period.” This reference stopped short of giving a timeline of 18 to 24 months for the current policy, as anticipated by some market participants.

So, money will remain cheap for the immediate term. This doesn’t necessarily affect mortgage rates but the heavy government involvement in the mortgage market ensures that mortgage rates will continue to remain low as well.

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