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Thursday 5PM 12/17/09 Current Mortgage Rates Update
December 17, 2009 by Mortgage Rates Update · Leave a Comment
Thursday 5PM 12/17/09 Current Mortgage Rates Update
Hello, I’m David Beadle. Here’s what’s happening from RateAlertNow.com.
Thirty-year mortgage rates took a “nose dive” on Thursday, after word of a rise (instead of a drop) in first-time claims for weekly state unemployment benefits. This indicates to traders, that the Fed may +truly+ try and keep interest rates low–for a long time to come.
The national-average thirty-year fixed-rate mortgage is now at four-point-seven-five-percent with one and three-quarters points, down three-quarters of a point from Wednesday, for a savings of seven-hundred fifty dollars on a one-hundred thousand dollar loan.
The five percent rate was down five-eighths of a point to three-eighths of one point for a savings of six-hundred twenty-five dollars on a “hundred grand” of borrowing.
Remember: one point is worth “one percent” of the loan amount. This means “one point” is one-thousand dollars on a one-hundred- thousand dollar loan…and two-thousand dollars on a two-hundred thousand dollar loan.
When it comes to a two-point loan, that represents two percent of the loan amount. This means “two points” is two-thousand dollars on a one-hundred thousand dollar loan…and four-thousand dollars on a two-hundred thousand dollar loan.
The national-average fifteen-year fixed-rate mortgage was down a half-point, with the four-and-a-quarter-percent rate at one-and-one-eighth points. And the four-and-a-three-eighths percent rate is now at half of one point.
In order for you to know “when” to lock your “floating” fixed-rate
mortgage, you have to have “an Early Warning” system on changes in current rates & points +before+ they occur throughout every business day. That’s where my “Rate Alert Now” service becomes essential to your “rate lock” strategy. I’ll tell you via regular e-mail and/or mobile “text messaging” when current rates are about to go up, and if you act quickly, you may be able to reach your local mortgage professional by phone to lock your rate +before+ the mortgage company has had time to execute an emergency rate change. The cost of my service is less than one dollar a day.
As mentioned, weekly jobless claims jumped higher—to 480,000 after having been at 473,000 a week earlier. The expectation had been for a mild drop, which is why the reaction in the mortgage rate market was so strong, when the +opposite+ occurred. Bad economic news is usually good news for those seeking lower “home loan” rates.
That’s what’s happening. I’m David Beadle. For full details on my real-time mortgage rate alert service to help you “beat the system,” visit RateAlertNow.com and check back here on Friday morning for my next *free* mortgage rate update.
