Bookmark and Share Contact us by phone: 561 450-8258. Contact us by email.

 

Bankrate: ARMs drop to near ridiculous levels

By Palm Beach Business.com

mortgage rate chart for south floridaDELRAY BEACH — The continuous stream of weak economic reports helped keep mortgage rates down over the past week.  In fact, rates for adjustable rate mortgages fell to levels so low, they’re “bordering on the ridiculous,” according to Bankrate.

Bankrate’s national mortgage market survey found the 30-year, fixed-rate mortgage dropping to an average of 4.37 percent with 0.38 points from 4.41 percent a week earlier. Freddie Mac’s Primary Mortgage Market Survey held steady over the week at an average of 4.22 percent with 0.7 point.

Palm Beach Business.com’s South Florida Mortgage Survey found the 30-year averaging 4.268 percent with 1.0 point.

"Weaker economic data reports eased upward pressure on mortgage rates this week and kept them at or near all-time record lows,” Freddie Mac Chief Economist Frank Nothaft said. “The economy grew at a slower rate of 1 percent in the second quarter  than was originally reported due to a smaller increase in inventories and fewer exports. In addition, consumer confidence in August fell to the lowest reading since April 2009, according to The Conference Board.”

In the Freddie Mac survey, the five-year ARM fell for the eighth consecutive week to an all-time low 2.96 percent, with 0.6 point. Bankrate’s five-year rate stood at 3.07 percent with 0.40 point, down from 3.12 percent a week earlier.

Bankrate said some lenders have the five-year ARM at 2.5 percent or below. While these rates are tempting for borrowers, some loans are now priced in such a way that rates can only go up in the future. Bankrate advised borrowers to be sure about the length of time they plan to stay in their home or their ability to bank the savings in the meantime to avoid financial difficulties that higher monthly payments will bring down the road.

Also from the surveys, the 15-year fixed-rate mortgage dropped to 3.39 percent with 0.6 point, down from 3.44 percent a week ago. Bankrate put the 15-year at an average of 3.48 percent to 0.32 point, down from 3.63 percent a week ago.

ad for delray networking stars

 

coming soon the daily bulletin

Keep up with YOUR community. Receive our FREE email newsletters!
For Email Marketing you can trust

Follow us on TwitterPalm Beach Business.com on LinkedIn
FOLLOW US ON FACEBOOK


ad for palm beach business.com
Openings at $75K to $500K+

Hot Offers
CompUSA Best sellers
DELRAY'S ONLINE BUSINESS AND COMMUNITY NEWSPAPER — PALM BEACH BUSINESS.COM
   
palm beach business.com
SEPTEMBER 1, 2011 click to go home
 
         
click to go back to the top
Delray's Online Business and Community Newspaper