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CNN Live At Daybreak

How Low Can They Go?

Aired May 23, 2003 - 06:46   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


CAROL COSTELLO, CNN ANCHOR: Time for a little business buzz right now. You may want to get out your calculator because Susan Lisovicz is here live to tell us about mortgage rates.
So, Susan, where do the rates stand now?

SUSAN LISOVICZ, CNN FINANCIAL NEWS CORRESPONDENT: Well these are the kind of record lows that I like to tell you about, Carol. According to Freddie Mac, a 30-year loan now averages 5.33 percent. The 15-year mortgage rate dropping to 4.75 percent.

COSTELLO: Wow!

LISOVICZ: And the one-year adjustable loan dipped to 3.66 percent. This is -- mortgage rates falling now for the sixth consecutive week.

And when you have those kind of historic lows, guess what, not only are there a growing number of homeowners who are refinancing, but they're going shorter, taking out a shorter-term loan than say the typical 30-year timeframe. Fifteen-year loans have been popular, but now 10-year loans are cropping up. And in some cases, shorter loans have higher monthly payments; but you know the deal, Carol, if you pay fewer payments over the life of the loan you can save thousands in interest costs.

You know, Carol, I bought my first home last August and I refinanced last week. They're just really -- they're dropping so substantially.

COSTELLO: Yes, so if you didn't refinance the first time around, do it now.

LISOVICZ: Well check it out and see if it makes sense. Typically I think it's -- if it's a full point lower, then it's worth your while.

COSTELLO: Definitely so.

Quick look at the futures before you go.

LISOVICZ: Slightly higher. Wall Street expected to view the new tax cut as a positive thing, maybe a jolt over the summer, but a lot of people on the fence about it.

Yesterday, the Nasdaq and the Dow posting a second day of gains as investors focused on positive corporate news. The Dow adding nearly 1 percent. The Nasdaq jumping 1.2 percent. Of course the markets will be closed on Monday for Memorial Day. Kind of a slow news day economic wise, we expect volume to be on the low side. Watch out for the Gap, the big retailer topped expectations after the bell yesterday -- Carol.

COSTELLO: I like to hear that, Susan. You don't know how much, and you can probably figure out why.

LISOVICZ: I can imagine why, your portfolio maybe.

COSTELLO: Yes. Thank you, Susan. Appreciate it.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com







Aired May 23, 2003 - 06:46   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: Time for a little business buzz right now. You may want to get out your calculator because Susan Lisovicz is here live to tell us about mortgage rates.
So, Susan, where do the rates stand now?

SUSAN LISOVICZ, CNN FINANCIAL NEWS CORRESPONDENT: Well these are the kind of record lows that I like to tell you about, Carol. According to Freddie Mac, a 30-year loan now averages 5.33 percent. The 15-year mortgage rate dropping to 4.75 percent.

COSTELLO: Wow!

LISOVICZ: And the one-year adjustable loan dipped to 3.66 percent. This is -- mortgage rates falling now for the sixth consecutive week.

And when you have those kind of historic lows, guess what, not only are there a growing number of homeowners who are refinancing, but they're going shorter, taking out a shorter-term loan than say the typical 30-year timeframe. Fifteen-year loans have been popular, but now 10-year loans are cropping up. And in some cases, shorter loans have higher monthly payments; but you know the deal, Carol, if you pay fewer payments over the life of the loan you can save thousands in interest costs.

You know, Carol, I bought my first home last August and I refinanced last week. They're just really -- they're dropping so substantially.

COSTELLO: Yes, so if you didn't refinance the first time around, do it now.

LISOVICZ: Well check it out and see if it makes sense. Typically I think it's -- if it's a full point lower, then it's worth your while.

COSTELLO: Definitely so.

Quick look at the futures before you go.

LISOVICZ: Slightly higher. Wall Street expected to view the new tax cut as a positive thing, maybe a jolt over the summer, but a lot of people on the fence about it.

Yesterday, the Nasdaq and the Dow posting a second day of gains as investors focused on positive corporate news. The Dow adding nearly 1 percent. The Nasdaq jumping 1.2 percent. Of course the markets will be closed on Monday for Memorial Day. Kind of a slow news day economic wise, we expect volume to be on the low side. Watch out for the Gap, the big retailer topped expectations after the bell yesterday -- Carol.

COSTELLO: I like to hear that, Susan. You don't know how much, and you can probably figure out why.

LISOVICZ: I can imagine why, your portfolio maybe.

COSTELLO: Yes. Thank you, Susan. Appreciate it.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com