Mortgage Blog

I heard from some experts that the economy will slow down if the bonds yield will reach 3%. And it is 2.939% as of today. Last time the bonds at this level was Jan 2014. And it went down after that. And another prior date was June 2011. More than 6.5 years ago. So the current interest rate is about 6-7 years high. But one major difference was that the 5/1 ARM rate was around 2.5% in June 2011. And the highest 30 yr fixed rate was 4.625% for the last 6-7 years.

So even when the fixed rate was high, people still could take ARM rate since they are about 2.xx or less than 3.5%. But this time, ARM rate is also around 3.875% to 4% now.

But for purchase loans, we can still get some good rates. I locked one jumbo 5/1ARM purchase with 3.5% to cover all the closing cost. This is a good rate on the current market.