Maureen Megowan's Blog

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Mortgage rates remain at record lows

Mortgage rates remained at record lows at the end of the week. The following are excerpts from the newsletter on interest rates published by HSH Associates :

"With another weak of relatively disappointing economic news to digest, mortgage rates drifted aimlessly, collectively bouncing slightly off recent lows, if moving at all. Meanwhile, the Federal Reserve held a two-day meeting to decide what, if any, additional support could be put into place to help the economy. In the end, the response was simply more of the same as they will continue both Operation Twist and buying mortgage-backed securities through the end of the year.

Since broad-market interest rates and mortgage rates are both lower than when the Fed began Operation Twist, it seemed logical that they would continue the process. Mortgage rates are both lower than they would be and more stable as a result of the program.

 

  

 

At the very least, we're in a soft patch in the recovery. There are plenty of risks which might further derail economic growth, with a number of them outside of anyone's direct control. The conditions which foster needed confidence to move the economy forward don't seem to be in play at the moment and it is an open question whether they will to any degree in the near future. Meanwhile, the Federal Reserve and other central banks are doing what they can to address individual and collective problems which aren't insurmountable but will require protracted solutions. There is no quick fix for any these issues, and so we are likely to continue to stumble along. That said, we think there are some pretty powerful supports for the US economy forming, lower energy prices among them, but those also will take time to work. At this point, it seems like it's going to be a long, slow summer to us.

A few notable points of economic data are due next week. New Home Sales are of interest, as is the final revision to first quarter GDP and the final June report covering Consumer Sentiment. It's hard to expect any kind of marked improvement over recent trends for any of these. Mortgage rates should be roughly the same by the end of next week.."

The following are interest rate quotes from Al Hermann of American California Financial :

30 Yr Fixed FHA

Rate

APR

 

       

3.250

3.973

Details

       

 

Conforming 30 Yr Fixed up to $417000

Rate

APR

 

       

3.500

3.643

Details

       

 

Conforming Jumbo 30 Yr Fixed $417001 - $625500

Rate

APR

 

       

3.875

4.014

Details

       

 

Jumbo 30 Yr. to $1.5 Mil

Rate

APR

 

       

4.375

4.509

Details

       

 

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

Rate

APR

 

       

3.500

3.488

Details

       

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 1 commentMaureen Megowan • June 23 2012 11:46AM
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