30 Year Mortgage Rates Fall for Second Week
Mortgage rates for 30 Year loans came down again this week. Last week they fell from 6.13 to 5.87. This week they moved down slightly from 5.87 to 5.85. These drops were probably due to the Fed cutting interest rates 2 weeks ago. What is interesting is that rates on 5 and 1 year ARMs went up. This is probably due to the fact that lenders see 30 year loans as safer and are viewing 5 and 1 year ARMs with more caution. In the past 2 weeks 5 year Arms's have gone up from 5.58 to 5.67 and 1 year Arms have gone from 5.14 to 5.24.
So in the context of the last few years what are mortgage rates doing. Here is a graph of the 30 year mortgage graphed since 2005. With the exception of a sharp dip in mortgage rates last month, the 30 year rate is the lowest it has been since 2005.
If you want to look at more mortgage rate trends we have a tool over here that graphs mortgage interest rates.