Low Rate Second Mortgage
Bankrate: Mortgage Rates Fall to Three-Month Low
Mortgage rates declined for the third time in the last four weeks on the heels of slower second quarter economic growth. The average 30-year fixed rate mortgage fell to 6.65 percent, the lowest since April 26. According to Bankrate.com's weekly national survey of large lenders, the 30-year fixed rate mortgages had an average of 0.3 discount and origination points. The average 15-year fixed rate mortgage, popular for refinancing, dropped by a similar amount to 6.3 percent. On larger loans, the average jumbo 30-year fixed rate declined to 6.86 percent. Adjustable rate mortgages also declined. The average 5/1 adjustable rate mortgage slid to 6.36 percent, and the average one-year ARM retreated to 6.03 percent. Validation that the economy did indeed grow at a slower pace pushed mortgage rates lower this week.
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Getting ready for a mortgage rise
ALTHOUGH the Bank of England left interest rates unchanged this month, there is a growing feeling mortgage rates could rise in August or September, and some observers predict a second rise by Christmas.
Two building societies - Nottingham, and Norwich & Peterborough - both raised standard variable rates (SVR) in the past month, with N&P up 0.19% to 6.49%, while base rates stayed unchanged. Two increases in base rates before Christmas could leave thousands of homeowners paying around 7% on SVR mortgages by early 2007 - in an era of supposed "low inflation". Is there time to get a new loan to stave off trouble? There is little doubt that almost all borrowers on SVR mortgages - perhaps a third of the total - would save by switching to either a fixed rate, or tracker/ discounted rate loans.