Mortgage Rates Down This Week!

Average rates on 30 year fixed loans on a national basis dropped to 6.31% that was the lowest since May. Last weeks the rate was at 6.46% according to Freddie Mac. An estimated 2 million loans will start adjusting with the market over the next 18 months. Loans that have an introductory period with a lower that average interest rate, but begin to change according to some predetermined index after a certain number of years are called ARMs (adjustable rate mortgages). They were very popular over the last 5 years, and a lot of them are beginning to "mature" so to speake. Bush officials met with large mortgage servicers on Wednesday to talk about solutions to the challenge.