July 21, 2006

Freddie Mac, chartered by Congress in 1970 to help the flow of money in the secondary mortgage market, recently reported that mortgage rates are at their highest level since May 2002.

Here are how some of the averages compare today versus 1 year ago:

30 year fixed
6.80 vs. 5.73

15 year fixed
6.41 vs. 5.32

5 year ARM
6.36 vs. 5.26

As you can see, mortgage rates have risen considerably.

The release of the June core Consumer Price Index (CPI), created some concern in the financial markets that the Fed would be more inclined to raise rates later this year. And the tension and uncertainty in the Middle East is not helping the situation.

If you have a mortgage that you are thinking of refinancing, don’t procrastinate. As the old saying goes, "if you snooze you lose". You could be losing significant money over the long-run by even just a quarter point increase in rates. Call me for a free consultation to discuss your current situation.