Mortgage Rates For The 5 And 1 Year Arm Hit All Time Lows

The 30 year rate fell from 5.00 to 4.93 this week

. In a time where the news is filled with stories about inflation fears we are seeing mortgage rates steadily decline. This is the 5th week in a row where rates have held steady or fallen. Its also the lowest we have seen rates in 2010.

The 15 year dropped from 4.36 to 4.30. This is only slightly above the all time low of 4.27 for the 15 year fixed mortgage.

The 5 year arm dropped from 3.97 to 3.95 which is an all time low for the 5 year arm. The 1 year arm fell from 4.07 to 4.02. Oddly enough even though the 1 year arm is at an all time low this week its a pointless option because the 5 year arm is lower than the 1 year arm.

Below are rates from the weeks from Apr 15, 2010 to May 13, 2010

May 13, 2010

30-fixed 4.93 15-fixed 4.30 5 ARM 3.95 1 ARM 4.02

May 06, 2010

30-fixed 5.00 15-fixed 4.36 5 ARM 3.97 1 ARM 4.07

Apr 29, 2010

30-fixed 5.06 15-fixed 4.39 5 ARM 4.00 1 ARM 4.25

Apr 22, 2010

30-fixed 5.07 15-fixed 4.39 5 ARM 4.03 1 ARM 4.22

Apr 15, 2010

30-fixed 5.07 15-fixed 4.40 5 ARM 4.08 1 ARM 4.13

Oct 29, 2009

30-fixed 5.03 15-fixed 4.46 5 ARM 4.42 1 ARM 4.57

As we can see we are not seeing wild jumps in mortgage rates like we saw last year. But we are seeing a slow but steady decline in rates for all 4 mortgage products.

In addition to rates it also interesting to look at mortgage payments. We took today's rates and used a mortgage calculator to determine mortgage payments for a 200k mortgage. We also did the same thing with rates from April, 29 2010 and rates from October, 29 2009 (6 months ago).

May 13

30-year $1065.1

15-year $1509.62

5-year ARM $949.07

1-year ARM $957.13

Apr 29

30-year $1080.98

15-year $1518.76

5-year ARM $954.83

1-year ARM $983.87

Oct 29

30-year $1077.31

15-year $1525.9

5-year ARM $1003.88

1-year ARM $1021.7

As we can see rates are lower but not vastly lower. Compared to two weeks ago a mortgage payment would be $15.88 lower (1.46 percent). So there is a savings but its not huge. Moving forward I still think rates have more room to move up than down. With two of the four mortgage products at all time lows there is not that much room to move farther down. While I don't see alot of movement for the next few weeks overall I would expect rates to be substantially higher 6 months from now.

by: Ki Gray

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