Joe's Money

One of the key indicators of the housing market is the corresponding loan rates.  Over the last week, the average rates dropped back into the 5% range.

According to Freddie Mac’s weekly report, the 30 year average mortgage rate dropped back to 4.87%.  This is the lowest rate seen since May of this year.  Mortgage tracker BankRate.com also noticed a drop in rates, but not quite as large as Freddie Mac.  BankRate.com sees the average rate at 5.22%.  15 year rates are even lower at 4.64%.

Also this past week, congress has been working to extend the $8,000 first time home buyers tax credit.  This should help would be home buyers jump into an already excellent buyers market.  Currently, the tax credit is set to expire November 30th.

Home owners last year definitely took advantage of the credit.  Last year the average 30 year mortgage weighed in at 6.2%.  To show the savings on these rates, consider this.  A $200,000 loan at last years 6.2% would show a monthly payment of $1225 while the same $200,000 loan at todays rates would save you about $125 per month.  Not bad!

These low rates helped boost mortgage applications last week.  Applications were up over 16%.

Hey all!  Every month, I will scrape the internet to find the best online savings account rates.  Let’s take a look at October’s best.  Keep in mind, some accounts do have minimum opening balances.

Also, if you are looking for CD accounts, take a look at each of the below savings accounts, more times than not, they offer slightly higher rates on their CD’s.

American Express 1.85% No minimums, no fees

Ally 1.80% No minimum, no fees

Capital One 1.60% $10k minimum, no fees

HSBC Direct 1.35% No minimums, no fees

ING Direct 1.30% No minimum, no fees

Emigrant Direct 1.30% No minimum, no fees

I personally use HSBC Direct.  While they do not have the best rate for the time being, they stay competitive.  American Express seems to be the best deal out there right now.  I have never used them.

Until next time!