Previous Week’s mortgage interest rates have shown some phenomenal changes; let’s have a closer look at the rates and a detailed analysis of the same.  Survey for the mortgage interest rates for the previous week that ended on January 24^th indicated tremendous fall in rates. According to the survey results of the firm Freddie Mac, since the spring of the year 2004, the rates have never pitched so low.  
 

During the entire week the FRM (30 Year Product) was at 5.48 percent and the points were at 0.4, which is less when compared to its preceding week’s 5.69 percent that had obtained 0.5 point. A year ago the 30 year FRM was at 6.25 percent. The rate observed on 24th of January of this year has been claimed as the lowest since the average rate of March 2004, which was 5.40 percent.

This seems to be the case of the 30 year FRM, now let’s take a look at the 15 year FRM. This seems to be nothing different from the previous case as the FRM has dropped from a 5.21 percent to the average of 4.95 percent. This is the lowest average recorded since first week of April 2004 when the average was 4.84 percent. However the points remained unaltered at 0.4. In the year 2007, the same week recorded an average of 5.98 percent.

(ARMS), the five year treasury product – indexed hybrid adjustable- rate mortgages fell 27 basis points to a percentage of 5.13 when compared to the previous week. Fees and points also were altered from 0.2 to 0.4. A similar pattern of the 5 year hybrid product was observed in the last week of June 2005. The average then was 5.06 percent, though reporting of statistics for that specific product begun by Freddie Mac only in January 2005. Another significant fact is that the average was as high as 6.0 percent for previous year.

One year Treasury indexed ARMS observed similar patterns as that of the five year product by falling 27 basis points to an average of 4.99 percent. This is the lowest Since 2005 October. The average then was 4.91 percent. The previous year’s average for the product was 5.49 percent.

The Vice President of Freddie Mac Mr. Frank has announced that the condition of housing market is not at its best. The entire year’s housing starts was reported to have fallen by 25 percent in comparison with the previous year’s statistics. Hosing starts fell in the month of December to 1.006 million units, this is observed to be the slowest pace since the year 1991(May). He declares this as the biggest annual decline in the market since the year 1980.

The most interesting news is that the same kind of survey conduced by another firm MBA reports entirely different status for the above mentioned projects. All the rates have increased according to the survey conducted by the association. This only shows the alertness with which we the public must thoroughly research before coming into a conclusion.