We all hear that “interest rates fluctuate on a daily basis.”  Ever wonder how rates fluctuate over a period of years?  Here’s a quick run-down of historical rate changes over the past five years for two major mortgage products: the 5/1 ARM (adjustable rate mortgage) and the 30-year fixed:

30-YEAR FIXED
The most popular of all mortgage products is still at historic lows – and here’s proof.  In April 2005, the 30-year fixed hovered around 5.5%, spiking to nearly 6.5% a year later.  The 30-year saw ups and downs through March 2009, hovering right below 5%.  Today, the 30-year is still right on top of the 5% marker – and keeps fluctuating on a daily basis.  For payment stability, a long-term length of stay and a monthly principal that will never change, the 30-year fixed may be perfect for your situation.

5/1 ARM
Having an adjustable rate is advantageous to those looking for shorter stays in their new home – and ARM’s often deliver lower rates than fixed products.  Especially now.  In April 2005, 5/1 ARM’s were around 4.85% — and though they fluctuated with trending ups and downs similar to fixed rate products, the 5/1 ARM is now at it’s lowest point in the past five years.

For the most current rates and trends, call me today!

Source: BankRate.com

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