Recent Interest Rate News from HSH Associates

Excerpts from HSH Associates newsletter dated 11/3/06:

Although fixed mortgage rates dropped by a dozen basis points this week to land at 6.38%, you shouldn’t expect them to wait there for long, according to the latest data from the nation’s leading survey of mortgage pricing. Hybrid five-one ARMs tripped lower, too, easing 13 basis points to close the survey period at 6.16%. Both figures are close to their year’s low.Rates wended their way down this week in a fairly steady fashion, as each piece of soft economic data seemed to make it more likely that the next Fed move would be to cut interest rates amid a slowing economy.

                                                            Fixed Rate                   Variable

Survey Area	15 Year	30 Year	Composite	1 Year	Composite
NW/National	6.05%	6.38%	6.22%	5.95%	6.14%
CA/Statewide	6.09%	6.40%	6.26%	6.08%	6.16%

Data above include both conforming and jumbo loans for “A” credit borrowers and include a wide range of LTV and discount structures.