Mortgage Rates Bounce Back from Historic Lows

January 22, 2009

Earlier this week mortgage rates for 30 year conventional mortgages were at 5.14%, at the close of business today, rates were at 5.44% according to bankrate.com.

In our last Daytona Beach Real Estate Weekly Report, we commented that rates were very low and that long-term economic trends would force rates up. We don’t know what will happen next, but I suspect that we may not see 5.14% rates again.

The boost in rates means an additional $37/month on a $200,000 mortgage, or over $13,000 over a 30 year mortgage. We have shown that if rates went from 5.11% to 6.5%, you would pay more for a $180,000 mortgage than a $200,000 mortgage.

So, if you’re in the market for Daytona Beach or Ormond Beach homes or condos, and you plan to finance, keep a close watch on mortgage rates. Check back here often for more information and breaking news.