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Free Lower Rate Mortgage offers!
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Welcome to your November 2005 TheLowerRate.com
newsletter |
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Going
... going ... gone. Time to Dis-ARM your mortgage!
After nearly
two years of warnings that home mortgage rates are heading up,
economists and lenders say consumers had better take notice.
The average rate on a 30-year fixed-rate mortgage rose to 6.36 percent
this week, its highest level in 16 months.
But for many borrowers and even some lenders, the more worrisome trend
is rising short-term rates -- which hit a four-year high this week -- and
the narrowing gap between adjustable-rate and fixed-rate mortgages. As
a result, home equity lines of credit and so-called "capless" adjustable-rate
mortgages are losing their luster.
" It's been a pretty phenomenal run," said Freddie Mac's deputy chief
economist, Amy Crews Kutts. "I think rates will bounce around, but the outlook
is that it's not going to get better. Now is the time to start thinking about
reallocating that debt profile and making sure that it's in the best possible
shape it can be in."
The rates on many consumer loans are tied to the prime rate, which is now
7 percent; just 18 months ago, it was at 4 percent.
Some experts expect mortgage rates to go as high as 7 percent by the end
of the year, but that's well below the double-digit rates that still haunt
loan officers who were in the business in the 1980s. |
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find
out if you are in the best loan for your current situation |
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