9th Consecutive Week of Lower Rates | Mortgage Rates

Posted by Jace Stolfo on Friday, January 2nd, 2009 at 3:48pm.

According to Freddie Mac's Primary Mortgage Market Survey (PMMS), long term interest rates fell to a new low for the week ending 12/31/08.  The 30-year-fixed rate averaged just 5.10% with .7 points.  The lowest interest rates since the PMMS started in 1971.  Just in the last week, refinance applications jumped over 500%.

A rule of thumb to remember, when it comes to your monthly payment, a 1% change in interest rates is equal to a 10% change in home value.  In other words, If a $200,000 house goes down to $180,000 but interest rates go up 1%, you payment is essentially the same.

31-Dec-08  30-yr    15-yr    5/1-yr ARM   
Average Rates:  5.10% 4.83% 5.57%
Fees & Points:  0.7 0.7 0.7

Source: Freddie Mac

Information not guaranteed.

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