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Interest rates eased off just a bit this week

Interest rates eased off just a bit this week and remained near record lows. following are some excerpts from this week's newsletter on interest rates from HSH Associates :

"As expected, mortgage rates settled back a little bit this week after an upward move totaling fifteen basis points over the last two weeks. General upward momentum in the economy fostered that rise, but at least a few doubts about the economy's forward momentum seem to have crept back in.

Although rates have bumped a little off their historic bottoms of February, the modest move should not create any additional serious turbulence for the housing market. Even in a worst-case scenario, an eighth-percentage point increase in a loan's interest rate isn't sufficient to ruin most deals, and that slight increase could be "bought down" through the payment of about a half-point fee, perhaps less.

 

We don't want to sound pessimistic; in fact, we've been more optimistic than most over the past six months or so, and were arguably among the first to acknowledge the warming trend in the economy. That said, there hasn't been enough good news to suggest any kind of immediate breakout from the modest growth pattern we enjoyed in the fourth quarter of last year. It is true that at some point, even sustained 3% GDP readings or thereabouts will see the Federal Reserve express enough confidence to start raising rates, but we will need to put together a string of quarters of such growth before that happens.

(Next week) mortgage rates will shed perhaps a couple of basis points as a little doubt about the recovery's strength creeps in.


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

30 Yr Fixed FHA

Rate

APR

 

       

3.700

4.384

Details

       

 

Conforming 30 Yr Fixed up to $417000

Rate

APR

 

       

3.875

4.021

Details

       

 

Conforming Jumbo 30 Yr Fixed $417001 - $625500

Rate

APR

 

       

4.000

4.140

Details

       

 

Jumbo 30 Yr. to $1.5 Mil

Rate

APR

 

       

4.625

4.761

Details

       

 

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

Rate

APR

 

       

3.740

3.287

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 2 commentsMaureen Megowan • March 30 2012 07:45PM

Comments

Like in Limbo how low can they go and how low may they stay. Got another 12 months at least.

Posted by Winston Heverly, GRI, ABR, SFR, CDPE, CIAS, PA (Winston Realty, Inc.) over 6 years ago

It feels like a roller coaster ride...up and down, up and down. When will it end?

Posted by Les & Sarah Oswald, Broker, Realtor and Investor (Realty One Group) over 6 years ago

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