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Mortgage Rates Remain at 2011 lows

Interest rates have remained steady this week, after slowly declining over the last several weeks.The following are some excerpts from this week's newsletter on interest rates from HSH Associates :

"So far this year, the recovery has failed to meet expectations. In the coming weeks, the Federal Reserve will step away from just one program of extraordinary support, and there are divided opinions about what will come next. Will rates rise or fall? Big bets are being placed on both sides, no doubt. Will the economy falter further, requiring some form of Quantitative Easing III? Some observers are suggesting that this can't be completely written off at this point. Whatever the case, we will move away from the certainty of the Fed's involvement and into a less-certain period, at least for a while. At present, interest rates are sliding gently as things continue to show signs of slowing. More uncertainty brings risk, and risk usually brings higher interest rates.

"As to what happens, we'll need to wait and see. For now, mortgage rates are even more favorable than they have been at any time in 2011. If you can, it might be a good time to get your purchase or refinance done reasonably soon."

There is speculation that the next move by the Federal Reserve may be to increase the federal funds rate which is now close to zero. If this occurs, short term interest rates will rise, but may have little effect on mortgage rates. Any move to change existing policy by the Federal Reserve, however, is not likely until the end of the year or if inflationary indictors begin to move upward.

The following are interest rate quotes from Al Hermann of American/California Financial Services ,

 

30 Yr Fixed FHA

Rate

APR

 

       

4.250

4.707

Details

       

 

Conforming 30 Yr Fixed up to $417000

Rate

APR

 

       

4.500

4.652

Details

       

 

Conforming Jumbo 30 Yr Fixed $417001 - $729750

Rate

APR

 

       

4.750

4.896

Details

       

 

Jumbo 30 Yr. to $1.5 Mil

Rate

APR

 

       

5.125

5.264

Details

       

 

Jumbo 7/1 ARM $1.5 Mil (higher loan amt available)

Rate

APR

 

       

3.750

3.288

Details

       

The following are interest rate quotes from Jan Schott Bank of America, Home Loans jan.schott@bankofamerica.com 310-802-2300 :

Conforming 15/Yr Fixed to $417,000

3.625% @ 1.000/pts            3.875% @ 0/pts

 

Conforming 30/Yr Fixed to $417,000

4.625% @ .125/pts               4.875% @ 0/pts

 

Conforming High Balance 30/Yr Fixed to $729,750

4.625% @ .625/pts              4.750% @ 0/pts

  

Non-Conforming 5/Yr Fixed to $2,000,000

3.500% @ .875/pts               3.750% @ 0/pts

 

Non-Conforming 30/Yr/Fixed to $2,000,000

5.000% @ .625/pt                5.125%@ 0/pts

  

FHA Fixed to $729,750

4.500% @ .250/pts              4.750% @ 0/pts

For more information about Palos Verdes and South Bay Real Estate and buying and selling a home on the Palos Verdes Peninsula, visit my website at http://www.maureenmegowan.com . I try to make this the best real estate web blog in the South Bay Los Angeles and the Palos Verdes Peninsula. I would love to hear your comments or suggestions.

Comment balloon 2 commentsMaureen Megowan • May 30 2011 06:28PM
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