For the 5th straight week, mortgage rates dropped in Atlanta last week. The 30 year fixed rate mortgage dropped another 0.03 basis points. This puts mortgage rates back to levels last seen in late March of this year.
This recent rally in the bond market continues to present a perfect opportunity to get out of those hybrid ARMs which are about to adjust upward for many borrowers. Right now, someone with a 300,000 mortgage could do a no closing cost refinance with Primacy Mortgage at 6.50% (6.51% APR). For anyone with an ARM adjusting in the next few months, this is a golden opportunity to lock in what is really a fantastic rate.
Last week, ABC World News ran a story on mortgages. In the story, they cited some very interesting statistics:
- 25% of mortgages are ARM's
- In 2006 there are $500 Billion in mortgages which will experience their adjustment period
- A large number of these mortgages will jump somewhere between 2 and 5 percent this year
Are you among those whose mortgage will adjust this year? If so, now is the perfect time to refinance into a 30 year fixed rate loan. Rates have come back down to the levels we were seeing back in March and April of this year. It's unclear where rates are headed over the next 12-24 months due to uncertainty on the inflation front.
Don't wait for rates to continue to fall, refinance now using a no closing cost refinance and lock in what is a very good rate - historically speaking. Then, if rates continue to drop, you can refinance again at no cost and lock in the better rate. Think of this as an adjustable rate mortgage that can never go up.
For the 4th straight week mortgage rates have fallen. This has provided us with an excellent opportunity to get folks out of those 5/1 and 3/1 ARMs from 2002 and 2003 which are either adjusting now or about to adjust. The benchmark 30 year mortgage rates dropped about 0.06%. However, rates are still up about 0.60% above what they were this time 1 year ago.
The 30 year mortgage is now at it's lowest level since April. This week's drop was in response to the cease fire in Israel and the Fed's decision to keep short-term interest rates unchanged. Additionally, the PPI fell in July indicating that perhaps the Fed will not need to continue tightening the money supply.
