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Interest Rates End Year Near Record lows

Interest rates ended the year just off of record lows .The following are excerpts from the newsletter on interest rates published by HSH Associates :

 

 

 

 

 

"As it comes to a close, it can be said that 2012 was a comparatively great year for housing markets. Home sales have been revived by improved affordability, produced though record low mortgage rates and low prices. The market has been pushed into improvement by a Federal Reserve fully utilizing what may be its most effective policy tools: the ability to directly manipulate both long-term interest rates and mortgage markets though various bond purchasing programs.

We have noted over the past few months that come fiscal cliff or compromise, the increase in taxes and decrease in government spending will cause an economic slowdown of some magnitude, making the Fed's task of reviving the economy all the more difficult. Growth in the third quarter was last estimated at over 3%; the fourth quarter will probably come in shy of that number by perhaps 0.5%, so the drag caused by a compromise slowdown should see us skirt the two quarters of negative growth which defines recession. That said, there's little practical different to be felt between GDP of about 1.5% and zero for the average consumer.

Mortgage rates should have at least another week of directionless holiday time wandering. No change is expected.

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

 

30 Yr Fixed FHA

Rate

APR

 

       

2.800

3.543

Details

       

 

 

 

Conforming 30 Yr Fixed up to $417000

Rate

APR

 

       

3.250

3.391

Details

       

 

 

 

Conforming Jumbo 30 Yr Fixed $417001 - $625500

Rate

APR

 

       

3.600

3.737

Details

       

 

 

 

Jumbo 30 Yr. to $1.5 Mil

Rate

APR

 

       

4.125

4.258

Details

       

 

 

 

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

Rate

APR

 

       

3.125

3.400

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 • December 28 2012 06:23PM

Comments

I think that interest rates will begin to rise. It is important for buyers to think about buying before we see the interest rates going up.

Posted by Joan Whitebook, Consumer Focused Real Estate Services (BHG The Masiello Group) over 5 years ago

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