What's up with interest rates? .... They're down!
For the third week in a row, the interest rate for a 30 year fixed mortgage has gone down. The rate on a one year adjustable loan remains the same.
The Bankrate.com article states:
"Since late June, the Fed has raised short-term rates five times by a quarter-point each time. The prime rate has gone from 4 percent to 5.25 percent. Yet rates on one-year adjustable-rate mortgages fell until autumn, when they began marching upward gradually. Long-term rates haven't seen such a turnaround. Yet. Economists are confident that long-term rates will rise this year."
According to the online article, many borrowers are opting for 3/1 arm or a 5/1 arm, where the interest rate is fixed for 3 (or 5) years, then it starts adjusting.
To learn more about interest rates, go here.