Wilshire Weekly Mortgage Update - October 1st

Let's Recap:
The 30-Year Fixed Rate Mortgage averaged 6.42%, up from 6.34% just last week.

The 15-Year Fixed Rate Mortgage averaged 6.09%, up from 5.98% just last week.

The 1-Year Adjustable Rate Mortgage averaged 5.6%, down from 5.65% just last week.

We can attribute this weeks increase in fixed interest rates to the weakening dollar which further increased inflationary concerns.

This week also marks the fourth consecutive week for a decline in the interest rate on adjustable rate mortgages; the Fed Funds Rate cut on September 18th was surely a contributing factor. Despite this decline in the interest rate however, the Mortgage Bankers Association has reported that the share of mortgage applications on adjustable rate mortgages is also down. A clear indication of the continuing struggle home owners face as their loan payments recast.

The Fed Funds Rate:

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Posted Monday Oct 01

(10/01/07 09:14PM) — Eugene Oregon Real Estate ~ Bridget Armstrong

Thank you for the recap, Ricardo. It is always most helpful. I can see that inflation is still very much a concern for the Fed.

(10/01/07 09:59PM) — Rick Grand

you have to love that rates are going up yet the feds lowered their rate. Naturally I get phone calls from clients or prospects that are surprised that they aren't getting rates in the 5% range. I had a client that wanted 100% financing, couldn't verify her income because she is self employed AND was shocked that she'd be getting a rate higher than 6%

to quote her "Well, I'm really surprised at the interest rate, I didn't expect that I'd have to pay more than 6% for my mortgage"

good times.