Mortgage Rates Down 5th Week In Row

Here are the National Rate survey Results (10/01/2009)

30 year Conventional Loan: 5.25% w/ average points 0.31

15 year Conventional Loan: 4.64% w/ average points 0.31

30 year FHA Loan: 5.24% w/ average points 0.09

5 year Adjustable Rate Mortgage: 4.69% w/ average points 0.31

Will rates rise or remain relatively unchanged?
Industry experts give their insights;

• 29% of respondents expect rates to fall in the coming weeks
• 21& predict a further increase in mortgage rates
• 50% forecast that mortgage rates will remain more or less unchanged

In my market in Ocean City, where a significant number of the properties that I sell are second home or investment condominiums, we have a pretty fair amount of different loan products available to assist the buyer.

Right now some local lenders have great rates on a 5/1 ARM at 4%.

Let’s compare:

• $300,000 loan amount @ 4.375% is a monthly interest only payment of $1,094
• $300,000 loan amount @ 4% is a principal and interest payment of $1,432
• $300,000 loan amount @ 5.25% on a year year fixed monthly payment is $1,657

just a quick update to keep you posted.

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