Miami Beach Real Estate, Mortgage Rates

Today’s Mortgage Rates Hit Low Point

Analysts say the 30-year fixed rate mortgage currently sitting at 5.88% is unlikely to fall any further for the rest of the year.

This year the rate on the fixed loans is only down a quarter of a point as the credit markets have cut the link between it and yields on 10-year Treasuries. Even as skittish investors have moved to Treasuries to trim the yields, mortgage lenders have not eased lending standards.

Driving interest rates higher, mortgage rates are likely to close 2008 at about 6% as investors in bonds focus on rising inflation.

Long-term mortgage rates will also increase due to the additional supply of Treasuries as Congress borrows to raise money for the growing federal budget deficit.

Mortgage Rates Rise-Potential Homebuyers Disappointed

Would-be home buyers were disappointed this week when mortgage rates that had been sliding went up.

It was reported that 30-year, fixed rate mortgages, which were at 5.96% last week, their lowest in more than two years, averaged 6.11% this week. On 15-year fixed-rate mortgages the rates rose from 5.65% last week to 5.78%.

The rates increased to 5.89% on five-year adjustable rate mortgages form 5.75%; and one-year ARMs moved up to 5.50%.