MORTGAGE RATES-THEN AND NOW

04.17.08

Mortgage rates for conventional fixed rate loans are delightfully low. Here are a few examples of how they compare to the rates back in August 2007. In August, a 30 year fixed rate loan with 2 pts had a rate of 6.25%; on April 8th 2008, the rate was 5.5%. The rate for the same loan at 20 years was 6.125% in August 07; last week it was 5.125%, both with 2 pts. A 3 year adjustable loan rate with 2 pts was 5.00% then; 4.625% last week. These were offers from a local bank.

It is clear that the sub-prime "mess", combined with the Fed’s rate reductions continues to make the cost of borrowing money for home purchases very attractive - but only if you qualify for borrowing in the first place.

On another front, one of the largest banks doing mortgage loans, Washington Mutual, is closing up its office in Washington Depot, CT. They offered great services to many real estate agencies' clients buying homes around here, so we are sorry to see it go. However it may make borrowing from our local institutions more desirable than ever.

Finally, in the "short subjects" department, Hotchkiss School students were out in great numbers Monday morning cleaning Route 41 between Sharon and the school. Except for a 1/3rd mile stretch which seems to have been skipped, or missed, the roadside looks terrific and I "send" the students a big thank you through this column for their great beautification service to the community.

©2008, R. Leech features