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Interest rates dip slightly again last week

Interest rates for buying a home on the Palos Verdes Peninsula dipped slightly again last week to new lows for 2014. It is interesting to note that jumbo mortgages ( in excess of $625,500 ) have interest rates available below conforming loans. The following are excerpts from the newsletter on interest rates published by HSH Associates :

"It's another surprising week for mortgage rates, as they continue to wander a gentle easing pattern. At present, we are at just about year-ago levels, with rates roughly equivalent to those seen in the week ending June 21, 2013.

At least on a comparative basis, even if rates manage to continue to slip, we may be stuck at these levels for a while. Back then, rates were in the early stages of a sharp rise, and to be able to do true year-ago comparisons, we'll need to see present rates leg down considerably from here. A year ago this week, rates stood more about a third of a percentage point below this week's levels.

 

"The stumbling economy and the wobbly job market are two of the many reasons mortgage rates not only can't move higher but have instead settled in recent weeks. Falling rates are to the benefit of potential homebuyers, but it's not as though interest rates have been any serious impediment for some time.

The Memorial Day holiday gives markets a bit of respite next week, and the calendar of economic data remains pretty light as well, so it may be that another quiet week is on tap. As the trend has been a downward one for rates for about the last seven weeks, give or take a blip, we seem most likely to see a little more slippage on the order of a few basis points.

The following are interest rate quotes from American California Financial:

 

30 Yr Fixed FHA

Rate

APR

 

       

3.750

5.400

Details

       

 

 

Conforming 30 Yr Fixed up to $417000

Rate

APR

 

       

4.125

4.246

Details

       

 

 

Conforming Jumbo 30 Yr Fixed $417001 - $625500

Rate

APR

 

       

4.250

4.361

Details

       

 

Jumbo 30 Yr. to $1.5 Mil

Rate

APR

 

       

4.125

4.219

Details

       

 

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

Rate

APR

 

       

3.125

3.165

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 0 commentsMaureen Megowan • May 26 2014 02:25PM

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