home mortgage rates

Mortgage lenders are in the business of making money. If the mortgage industry weren't a profitable one, there would be no reason for it to exist. So how does the mortgage lender make its money you ask… interest.

Mortgage payments generally cover some type of elongated timeframe. A $500,000 house, for instance, would generally take years of monthly payments to be purchased in full. Each of these monthly payments has an interest rate attached to it that makes the mortgage lenders profits. This interest rate fluctuates continuously and depends on the type of mortgage that you purchase. For example, the current interest rate for a 30-year fixed mortgage is approximately 6%. A 1-year adjustable rate mortgage, for instance, has a current interest rate of approximately 4.2%. In August of 2003, a 30-year fixed rate mortgage was approximately 6.47%, and a 1-year adjustable rate mortgage was approximately 4.08%.

The national average mortgage rates for 2004 are as follows:

Date	15-YR Fixed	30-YR Fixed	1-YR Adjustable
Jan-04	5.2%	5.88%	3.83%
Feb-04	5.1%	5.76%	3.72%
Mar-04	4.9%	5.59%	3.56%
Apr-04	5.29%	5.96%	3.77%
May-04	5.77%	6.40%	4.09%
Jun-04	5.8%	6.42%	4.25%

* Source: HSH Associates www.HSH.com

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Learn how fluctuating interest rates can signal a time to REFINANCE