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Mortgage Interest Rate Update

Interest rates moved back down about an eighth of a point over the last couple of weeks. The following are some excerpts from this week's newsletter on interest rates from HSH Associates :

"As expected, mortgage interest rates eased back a little this week. At least some economic optimism was crushed by June's weak employment report, driving home the point that the weak expansion may persist for a while longer yet."

"As long as there are domestic and international troubles so fully in play, a sustained or sustainable rise in interest rates seems unlikely. Investor money is sloshing from hope (equities) to despair (bonds), with the see-saw tipping one way or the other, and generally to a greater degree than is warranted. Now seven quarters old (probably eight quarters, actually), the recovery clearly lacks much upward strength, but it does have at least some meager built-in momentum. Will the expected upturn come as the year progresses? Conditions seem to suggest that it is possible, provided energy prices remain level or retreat, and hiring picks up from the near standstill seen in June. Lower gasoline and food costs could unleash some billions into the economy as we move forward, and there are trillions of dollars being held out there waiting for some clarity as to the state of governments here and around the world. We should also not forget about the effects of changing regulations which govern markets, tax structures and unknown built-in costs from new government policies. Just as consumers are reluctant to spend, given uncertain times, businesses too are reluctant to spend given the uncertainties they face, including unknown final demand.

The welcome dip in mortgage rates this week halted the minor rise which really only lasted about a week. We are still a little above June bottoms, and will remain there next week, when mortgage rates will probably nudge up a couple of basis points."

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

 

       

4.625

4.770

Details

       

 

Jumbo 30 Yr. to $1.5 Mil

Rate

APR

 

       

5.000

5.138

Details

       

 

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

Rate

APR

 

       

3.990

3.346

Details

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

Friday, July 15, 2011

Conforming 5/Year Fixed to $417,000

2.750% @ 1.000/pts                      3.000% @ 0/pts

 

Conforming 30/Year Fixed to $417,000

4.500% @ .375/pts                        4.625% @ 0/pts

         

Conforming High Balance 30/Yr Fixed to $625,500

4.500% @ .750/pts                         4.750% @ 0/pts

  

Non-Conforming 30/Yr Fixed $625,501 to $729750 (Loan Limit Expires 9/30/11)

4.625% @ .750/pts                        4.875% @ 0/pts

 

Jumbo 5-Year Fixed ARM to $2,000,000

3.375% @ .625/pts                        3.625% @ 0/pt 

  

Jumbo 30/Year Fixed to $2,000,000

4.875% @ .875/pts                         5.125% @ 0/pts

         

FHA Fixed to $625,500

4.500% @ .750/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 0 commentsMaureen Megowan • July 18 2011 07:34PM

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