Mortgage interest rates dropped this week as the markets reacted to the Federal Reserve. It is the belief of many analysts that the Fed’s onslaught of interest rate hikes may be coming to an end. According to a survey of one national mortgage lender, interest rates for a fixed 30 year mortgage are 6.3% this week; this is down from 6.32% the week before.
Mortgage interest rates are off from their highest levels of the year in November at 6.37%. Many mortgage lenders believe rates will resume their upward spiral in 2006.
Because of these interest rate hikes many analysts believe the housing market will continue to cool as mortgage interest rates resume their upward climb. This does not seem to be impacting the sales of homes across the country; sales of homes continue to set records in 2005.
Mortgage interest rates for 15 year fixed rate loans are averaging 5.85% this week. This is down from 5.87% the previous week. Interest rates for one year adjustable rate mortgages (ARM) are currently 5.15%; these loans averaged 5.17% the week before.
Mortgage rates for five year hybrid ARM loans are currently 5.77%. These loans have dropped from 5.78% the previous week.
At this time last year 30 year fixed rate mortgages were running 5.68%. Fixed rate 15 year mortgages were 5.11%, and the one year adjustable rate mortgage averaged 4.18%.