The Fed meets at the end of the month and there is some good news on tow fronts. First, Bank of America will buy a major mortgage company instilling a little confidence back into the system
Fed Chairman Bernanke says "We stand ready to take substantive additional action as needed to support growth and to provide adequate insurance against downside risks."
The stock markets are expecting a reduction of 1/2%. The short term rate is stands at 4.25% today according to the Freddie Mac site.
1. 30-year fixed-rate mortgage: averaged 5.87 percent with an average 0.4 point for the week ending January 10, 2008, down from last week when it averaged 6.07 percent as well. Last year at this time, the 30-year FRM averaged 6.21 percent.
2. 15 -year fixed-rate mortgage:year this week averaged 5.43 percent with an average 0.4 point, down from last week when it averaged 5.68 percent. A year ago at this time, the 15-year FRM averaged 5.96 percent.
3. Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs): averaged 5.63 percent this week, with an average 0.5 point, down from last week when it averaged 5.78 percent. A year ago, the 5-year ARM averaged 6.03 percent.
4. One-year Treasury-indexed ARMs: averaged 5.37 percent this week with an average 0.4 point, down from last week when it was 5.47 percent. At this time last year, the 1-year ARM averaged 5.44 percent
This is becoming a good time for Refi's and remember that the mortgage business is soo bad that you should say NO to all junk fees.
Thanks for Reading