|
Mortgage Rate History
Over the years we've found published mortgage rate trends don't accurately reflect the mortgage market in New York. They show a national average based on either Fannie Mae or Freddie Mac's average secondary market pricing. This pricing is based on a national average and on the price that lenders get when they sell their mortgage, not the pricing they offer to the public.
Shelter Rock Mortgage Corporation maintains a database of retail mortgage rates offered by the major lending institutions in the New York area.
We've attached a history going back to 1985. The 30 year fixed rate is based on a conforming mortgage amount with 2 points. The conforming mortgage limit is revised each year to reflect the cost of housing throughout the country. Mortgages for a higher amount, called a jumbo mortgage, will carry a higher rate of interest. The 2 point benchmark was used because through the 80's mortgages were routinely originated with points.
Most adjustable rate mortgages originated over the years were indexed to the 1 year T-Bill rate. Typically the rate would be 2.75% over the T-Bill rate. The government began reducing the national debt during the nineties, reducing the trading activity in Treasury Securities. Mortgage lenders began to shift from using the 1-year T-Bill to using the LIBOR as the index.
The "ARM Index" shown is the T-Bill rate up to January, 2003. At which point we are showing LIBOR (London Inter-Bank Offered Rate) as the "ARM Index". Typically a spread of 2.25% over LIBOR would be the rate charged. The "ARM Index" is shown for comparison purposes only.
Comparison Rate Graph
Comparison Rate Table
Fannie Mae Loan Limit History |