Maureen Megowan's Blog

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Interest Rates Continue to Move Down

 Last week, the Federal Reserve cut its benchmark Federal Funds rate, the rate at which it lends funds to member banks to a target rate of zero to 1/2%. This resulted in the prime rate to be cut by most banks to 3.25%. Although mortgage rates are only indirectly affected by movement in short term rates, the reduction in the Federal Funds rate also reinforced the reduction in mortgage rates due to the previously announced Federal program to expand its purchases of securities issued by Fannie Mae and Freddie Mac.

 

 

Conforming loan rates are now down to a level not seen since the early 1960's

FIXED RATES

CONFORMING

JUMBO

 

 

 

Rates

Points

Rates

Points

 

30-Year Fixed Rate

4.875%

1.000

8.250%

1.000

 

 

 

 

 

 

 

 

 

30-Year Fixed Rate FHA

5.375%

 

6.125%

 

 

 

 

 

 

 

 

 

 

40-Year Fixed Rate

5.750%

1.000

 

1.000

 

 

 

 

 

 

 

 

 

HYBRID ARMS

 

 

 

 

 

 

 

 

 

 

 

 

 

5/1 ARM

5.375%

1.000

6.250%

1.000

 

 

 

 

 

 

 

 

 

7/1 ARM

5.625%

1.000

6.500%

1.000

 

 

 

 

 

 

 

 

 

10/1 ARM

5.875%

1.000

 

1.000

 

 

 

 

 

 

 

 

 


 

 

INTEREST ONLY

Rates

Points

Rates

Points

 

HYBRID ARMS

 

 

 

 

 

 

 

 

 

 

 

 

5/1 ARM

5.625%

1.000

6.375%

1.000

 

 

 

 

 

 

 

 

 

7/1 ARM

5.875%

1.000

6.625%

1.000

 

 

 

 

 

 

 

 

 

10/1 ARM

6.000%

1.000

 

1.000

Interest rates provided by Michael Cordova with Milestone Mortgage

For more information on buying and selling real estate on the Palos Verdes Peninsula, visit my website at http://www.maureenmegowan.com

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 22 2008 03:12AM

Comments

I it great to see rates this low, I think it will help more homes sell. A couple of weeks ago I wrote a blog slowing how much more home you can buy at 4.75% compaired to 6.5% with the same paymnet. You might enjoy reading it.  

Why is today the best day to buy a home?

Have a great new year and may 2009 be your best year ever.

Johnnie

Posted by Logan_Utah_Real_Estate_ Cache_Valley_Homes_for_Sale (RE/MAX Excel) almost 10 years ago

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