“Out with the old year, in with the new. After several months of improving economic reports, optimism appears to be growing for the moment that the new year will bring steadily improving economic growth. There will no doubt be challenges both expected and unexpected as 2012 progresses, and probably, some beneficial surprises as well.

Will the housing market be one of them? Could be. Sales of existing homes are nudging higher, builders are building again (at least multifamily stock) and mortgage rates, well, mortgage rates really don’t get any lower than they are at the moment and are starting 2012 at approximately 60-year lows. That said, better economic news, should it persist, will tend to bump rates higher as we go.

Aside from fantastic mortgage rates and lots of available low-priced housing stock, the key to a housing market improvement is fewer folks losing jobs and more getting them. In that regard, the end of 2011 points to a hopeful warming trend. Seasonal adjustments aside, over the past five weeks new claims for unemployment assistance have been in their most favorable pattern since March 2011. During the week ending December 31, that trend continued, with 372,000 new applications for benefits filed at state windows. Fewer people losing jobs is a key to re-building shattered consumer confidence as we roll forward.

Mortgage rates are at favorable levels, and it would take monumental economic change for better or worse to move them in either direction very much. At the moment, the warmer economic climate here is providing some much-needed distraction from the troubles in Europe, but those issues continue to influence the markets.

Will the good news continue? More clarity should come next week with the release of Retail Sales data for December, consumer borrowing, initial January consumer sentiment readings and a few other indicators. Look for little change in mortgage rates next week, perhaps a couple of basis point upward movement at most.”

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

30 Yr Fixed FHA

Rate 3.750  APR 4.437

Conforming 30 Yr Fixed up to $417000

Rate 3.75  APR 3.895

Conforming Jumbo 30 Yr Fixed $417001 – $625500

Rate  3.875
APR  4.014

Jumbo 30 Yr. to $1.5 Mil

Rate  4.625
APR  4.761

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

Rate 3.375
APR 3.505

The following are interest rate quotes from Jan Schott Bank of America, Home Loans jan.schott@bankofamerica.com 310-802-2300 :

Conforming Loans to $417,000

5 Yr Fixed: 2.500% @ 1.000/pts 2.875% @ 0/pts
30 Yr Fixed: 3.875% @ 1.000/pts 4.125% @ 0/pts

Conforming High Balance to $625,500

5 Yr Fixed: 2.750% @ 1.000/pts 3.000% @ 0/pts*

30 Yr Fixed: 3.875% @ 1.000/pts 4.375% @ 0/pts

Non-Conforming Loans to $2,000,000

5 Yr Fixed: 2.750% @ 1.000/pts 3.125% @ 0/pts

30 Yr Fixed: 4.125% @ 1.000/pts 4.500% @ 0/pts

FHA Fixed Loans to $729,750

30 Yr Fixed: 4.000% @ 1.000/pts 4.375% @ 0/pts

Rates based on a Single Family Residence Purchase with 20% down, FICO score of 740 or greater, 30/day pricing. FHA is based on Single Family Residence Purchase with 3.5% down payment, FICO score minimum of 620 and 30/day pricing. Points are for Rate only. Closing Costs apply. Rates not guaranteed and subject to change daily. Please contact me for more information on Condo, Multifamily Units and Refinancing at 310-802-2300.

Based on the average monthly sales of 50 homes, the current inventory of 211 homes for sale equates to a little over 4 months inventory

The average price per sq. ft. for homes sold over the last 3 months is down approx. 5% over the comparable period last year. The average price per sq. ft. of homes sold had been relatively steady over the previous four months,but decreased in all of the cities of the Peninsula during November. It remains to be seen if this is a trend or just a one month blip in the market.

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.

“With just a slight wobble downwards, mortgage rates set new record lows this week. A modestly growing domestic economy is producing little upward pressure for rates, while downward force from the Eurozone trouble is a considerable counterbalance. Slack seasonal demand for funds may be playing a bit of a role, too, as even a couple of week upturn in applications for mortgages remains below levels seen as recently as October.

Conforming 30-year fixed rates finished the week at 4.05% + 0.31 points on average, besting the previous low of October 10 by five basis points. While there are no directly comparable records of which we are aware, rates are at approximately 60-year lows. That said, there is little practical difference between the rates of the past seven weeks and this week’s new low.

Muted economic growth with perhaps a slightly warmer feel has been evident for the past couple of months now. There appears to be just enough strength as to be able to tread water or even move forward slightly despite the current. Each month that we don’t lose ground allows us to propel just a little bit father along, and we may be able to generate some momentum if the situation across the Atlantic can find some stability.

The Federal Reserve held its final Open Market Committee meeting of 2011; no policy changes were expected, and none came. The statement which accompanied the close of the affair noted that “the economy has been expanding moderately”, while inflation “has moderated since earlier in the year.” Noted headwinds to growth included “apparent slowing in global growth” and a housing sector which “remains depressed.”

At least part of the reason that interest rates have eased back as the end of the year has approached is that inflation pressures seem to be subsiding. Largely driven by commodity prices, a strong period of price gains earlier this year has begun to peter out, leveling inflation. Measures of Consumer Sentiment have moved higher of late, as have Consumer Confidence but have yet to over take highs for the year, which weren’t exactly lofty highs to begin with. The weekly Bloomberg Consumer Comfort Index has been virtually flat over the past four weeks

Next week, the holidays kick in with a vengeance, with their usual whirlwind of things to do and places to go. Just as there has been little reason for rates to move much over the past couple of weeks, there will be little reason for them to do so next week. Rates will again wobble, possibly downward if we don’t get a “Santa Claus” rally in the equity market. “

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

30 Yr Fixed FHA     Rate 3.250    APR 3.922
Conforming 30 Yr Fixed up to $417000    Rate 3.750  APR  3.895
Conforming Jumbo 30 Yr Fixed $417001 – $625500    Rate   3.990    APR   4.130

Jumbo 30 Yr. to $1.5 Mil   Rate   4.875    APR   5.012

Jumbo 7/1 ARM $1.5 Mil (higher loan amt available)   Rate   3.375   APR    3.489

The following are interest rate quotes from Jan Schott Bank of America, Home Loans jan.schott@bankofamerica.com 310-802-2300 :

Conforming Loans to $417,000

5 Yr Fixed: 2.500% @ 1.000/pts 2.875% @ 0/pts
30 Yr Fixed: 3.875% @ .875/pts 4.125% @ 0/pts

Conforming High Balance to $625,500

5 Yr Fixed: 2.625% @ 1.000/pts 3.000% @ 0/pts*

30 Yr Fixed: 3.875% @ 1.000/pts 4.375% @ 0/pts

Non-Conforming Loans to $2,000,000

5 Yr Fixed: 2.875% @ 1.000/pts 3.125% @ 0/pts

30 Yr Fixed: 4.250% @ 1.000/pts 4.625% @ 0/pts

FHA Fixed Loans to $625,500

30 Yr Fixed: 3.750% @ 1.000/pts 4.250% @ 0/pts

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.

“Optimism about a plan to shore up wobbly Greek debt markets continues to diminish, and investors are again favoring the safe haven of US Treasury debt. Few countries have signed up for the euro-bailout plan and there is no indication as of yet that a deal will actually get done soon.

Of course, troubles in the world often end up being good news for U.S. mortgage borrowers, and this was again the case this week.

While news about the economy continues to suggest we will avoid falling into a new recession, there’s not much to suggest that a strong breakout of growth is imminent, either, and the slow economic slog continues, if at perhaps a better pace. No one knows this better than the Federal Reserve, which noted in the release which signaled the close of their two-day meeting this week that “economic growth strengthened somewhat in the third quarter” but “recent indicators point to continuing weakness in overall labor market conditions, and the unemployment rate remains elevated.”

The Fed also released its latest set of economic projections, and marked down the paths for GDP growth and unemployment while increasing their projections for inflation for 2012 and beyond. None of this was particularly good news, but did underscore the Fed’s recent decision to hold short-term interest rates at low levels at least though mid-2013 as it would appear the economy may need the additional support should the Fed’s expectations turn into reality.

Given fractious political bodies, both domestic and abroad, there’s little reason to expect that any sort of deal will be satisfying to any one. This rings as true for Greek and other euro-zone bailouts as well as President Obama’s half-trillion-dollar jobs bill or any Federal Reserve plans to stimulate the economy which may yet come. That we are in the midst (again) of an election cycle give one the uneasy feeling that nothing of any value will be accomplished for another whole year, and even then perhaps not for some while after any electoral change.

In its way, this concept foments or perpetuates the gloomy mood which is keeping things from improving. That’s not to say that a sunny outlook would suddenly fix the economy or poorly-capitalized governments; however, political and regulatory bodies need to lead or at least show the kind of leadership qualities that ordinary people can rally behind. People are angry, depressed and moody, not just here but around the world, and there doesn’t seem like there’s a lot of relief anytime soon. Ultimately right or wrong, moving in any direction with consistency, clarity and purpose would help. Seems unlikely, so more muddy mess ahead will be our path.

Mortgage rates love a Greek (or any other) tragedy. Opportunities to finance or refinance remain strong, and if you are so inclined, you might do well to get your loan in process before month’s end, when at least a minor crush of refinancing is to be expected due to the expansion of the HARP program.

The slight slip in rates this week will probably hold for next week, unless a spate of optimism for a Greek deal comes to market. Figure on a couple basis point move upward at most.”

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

30 Yr Fixed FHA

Rate
APR

3.750
4.437
Details

Conforming 30 Yr Fixed up to $417000

Rate
APR

3.875
4.021
Details

Conforming Jumbo 30 Yr Fixed $417001 – $625500

Rate
APR

4.250
4.392
Details

Jumbo 30 Yr. to $1.5 Mil

Rate
APR

4.750
4.886
Details

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

Rate
APR

3.300
3.347
Details

The following are interest rate quotes from Jan Schott Bank of America, Home Loans jan.schott@bankofamerica.com 310-802-2300 :

Conforming Loans to $417,000

5 Yr Fixed: 2.500% @ .625/pts 2.750% @ 0/pts
30 Yr Fixed: 4.000% @ .750/pts 4.250% @ 0/pts

Conforming High Balance to $625,500

5 Yr Fixed: 2.625% @ .875/pts 3.000% @ 0/pts*

30 Yr Fixed: 4.125% @ .625/pts 4.375% @ 0/pts

Non-Conforming Loans to $2,000,000

5 Yr Fixed: 3.000% @ .875/pts 3.375% @ 0/pts**

30 Yr Fixed: 4.500% @ .375/pts 4.625% @ 0/pts

FHA Fixed Loans to $625,500

30 Yr Fixed: 4.000% @ .750/pts 4.250% @ 0/pts

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.

“We’ve noted many times that even mild improvements in the economic picture would likely turn mortgage rates upward a little bit. After a less-dire tone to some key economic reports last week (and even rumors of some improvement on the Euro-mess front) we got our first taste of that this week, as mortgage rates moved off record lows to former record-low levels seen just a few weeks ago.

The mild rise in mortgage rates is not a great concern. Frankly, aside from kicking refinance activity a little bit higher, the effect on mortgage and housing markets of even record-low rates has been slight. At the moment, homebuying activity is more affected by factors other than rates.

” The homebuying market is being impacted by a lot of things, but the price of mortgage money today isn’t really among them. Along with income, the mortgage’s interest rate is a regulator of how much money a borrower might be able to obtain, relative to the income available to use toward a monthly payment. When rates are low, a given level of income allows the borrower to carry a larger loan amount, but just marginally so, and of course the inverse is also true. In this regard, low mortgage rates may serve to help steady home prices, since buyers in the market can ostensibly afford somewhat higher-priced homes.

But low rates, as alluring as they are, cannot alone overcome all of the other obstacles in the market. Most notably, a weak economy and corresponding poor job market have failed to produce the kind of confidence needed to feel comfortable making the kind of forward-looking commitment which is the purchase of a home. Confidence is further eroded by the very real possibility that this expression of faith might turn into an albatross, as it has for so many of today’s homeowners and former homeowners.

Consumer confidence figures are at a low ebb and seem unlikely to improve much for the foreseeable future. Our fractious political body is now turning its attention to 2012 elections, diminishing the likelihood that solutions to our many economic problems are coming anytime soon. 

So this is where we find ourselves. If the economic news is generally “better”, interest rates cannot easily fall. Should an emerging issue darken the picture, rates will ease. To the extent that volume is playing a role in firming mortgage rates, well, the minor rise in rates this week will tend to temper demand, and any premium would shrink as a result. It’s worth pointing out that if you want to see the economy get its legs back under it, you cannot expect lower mortgage rates, too. At this stage of the game, there’s little benefit in cheering for lower rates if it comes at the expense of economic promise.

Rates bumped higher this week, a little higher than even we forecast last week. They have probably overshot the mark to some degree, and with a fuller calendar of data next week, including reports on prices, home construction and sales, and more, some settling is probably the most likely course, so a decline of a few of basis points is expected. “

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

30 Yr Fixed FHA
 
Rate   3.750 APR 4.437     

Conforming 30 Yr Fixed up to $417000
 
Rate  4.000   APR   4.147        

Conforming Jumbo 30 Yr Fixed $417001 – $625,500 
Rate   4.375   APR    4.518
        

Jumbo 30 Yr. to $1.5 Mil
 
Rate  4.875   APR   5.012        

Jumbo 7/1 ARM $1.5 Mil (higher loan amt available)
 
Rate   3.600   APR   3.388        
The following are interest rate quotes from Jan Schott Bank of America, Home Loans jan.schott@bankofamerica.com 310-802-2300 :

Conforming Loans to $417,000

5 Yr Fixed:         2.625% @ .750pts                         3.000% @ 0/pts
30 Yr Fixed:      4.125% @ .875/pts                         4.375% @ 0/pts

Conforming High Balance to $625,500

5 Yr Fixed:         2.750% @ .875/pts                       3.125% @ 0/pts*30 Yr Fixed:        4.250% @ .750/pts                       4.500% @ 0/pts

Non-Conforming Loans to $2,000,000

5 Yr Fixed:         3.250% @ .875/pts                        3.500% @ 0/pts

30 Yr Fixed:      4.625% @ .750/pts                         4.750% @ 0/pts

FHA Fixed Loans to $625,500

30 Yr Fixed:      4.250% @ .500/pts                        4.500% @ 0/pts

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.

PRICE CHANGES:

Properties, on average, on the Palos Verdes Peninsula are selling for approx. 95% of list price. The average price per sq. ft. for Palos Verdes homes sold in the third quarter 2011 compared to the third quarter 2010, decreased approx. 4% overall, but varied city by city. Prices per sq. ft. are down approx. 18% on the Palos Verdes Peninsula from their peak in 2006. Prices in the South Bay, however, have decreased much less than other areas in Southern California due to the relative few number of foreclosures compared to other inland areas. This market is now considered a stabile market by loan underwriters.

The following is a chart of the sales price per sq. ft. for homes on the Palos Verdes Peninsula. Prices do seem to have stabilized. ( Note: I prefer to analyze average price per sq. ft. trends as the more often quoted “median” sales price is highly dependent on the mix of homes sold between less expensive homes and higher-end homes):

The following is a chart of the number of single family homes for sale, sold, and currently in escrow ( Pended) on the Palos Verdes Peninsula. The number of homes for sale on the Palos Verdes Peninsula is down approx. 8 % compared to this time last year. Sales volume appears to have stabilized however pending sales ( properties in escrow ) are up.

INVENTORY – The total inventory of single family homes for sale in the cities listed above is down approx. 25% compared to the prior year, the sales activity is up 6%, and there is only 4 months of inventory. For most of the last two decades, L.A. County has averaged an 8 month inventory. Homes in the lower end of the price range have also been selling faster than the higher priced homes.

FINANCING (See our web blog at http://mmegowan.activerain.com/ for rate updates):

Interest rates for Conforming Loans ($417,000 and below) are at approx. 4.4%, approx. .4% lower that at the end of last quarter. Rates for loans between $417,000 and $625,500 (conforming jumbos) are approx. 4.5% ( a reduction of about .4% from last quarter end. Conforming loans generally require a 20% down payment (less for FHA or VA loans). Interest rates on Jumbo 30 year fixed rate mortgages (loans in excess of $625,500) have an average rate of approx. 4.75%, a decrease of about .5% over the prior quarter. The spread in interest rates between conforming loans and jumbo loans has narrowed considerably over the last year or so as more banks are participating in making jumbo loans. Jumbo loans require a higher down payment of 25 to 30%. All rates above are APR rates as of 10/15/2011, and assume a 20% down payment, no points and a FICO score of at least 740.

Third Quarter 2011 Market Analysis for Palos Verdes Peninsula Condos and Townhomes

The average price per sq. ft. for townhomes and condos on the Palos Verdes Peninsula has fallen approx. 7% compared to the third quarter of last year. Prices in a few projects , such as the Palos Verdes Bay Club have fallen more than this. Pricing has improved for condos and townhomes during the third quarter of 2011 after dropping significantly during the prior quarter.

As far as picking up condos in this market for less than construction costs, the average price per sq. ft. paid recently for condos and townhomes in Palos Verdes has been approx. $327 per sq. ft. I would not consider this price to be significantly less than replacement cost including the cost of the land.

The following is a chart of Palos Verdes Peninsula condos and townhomes for sale and sold over the last year

The inventory of condos and townhomes for sale continues to fall dramatically from its peak in March 2011 ( a 37% decrease) and is 24% lower than a year ago. Sales volume is also 30% higher than last year, which has resulted in a reduction to only a 4 month inventory of condos and townhomes for sale.

I have been very involved in the condo and townhome market on the Palos Verdes Peninsula. You can see that by “Googling” the search term ” Palos Verdes Condos” and you will see that my website is the first listing on page one of the search results. To check out the various condo and townhome projects on the Palos Verdes Peninsula, see the following link on my website: PV Condos & Townhomes / Townhouses. Each of these project descriptions have an analysis of recent prices paid for sales in each project. You can also see the latest listings for condos and townhomes in Palos Verdes on my website at the following link: MLS Listings – South Bay and PV

“The Fed’s message was twofold: First, they are changing their investment holdings by selling up to $400 billion of holdings with maturities of less than three years, and will use those proceeds to purchase US Treasury debt with maturities of six years or longer. This will lower interest rates for everything from Treasuries to corporate bonds, with mortgages among them. The problem is that, in the present environment, mortgages are low yielding investments which have a fairly high risk profile, and investors are unlikely to want to snap up new MBS with even lower yields. In fact, over the past few weeks, the often-tenuous relationship between treasury yields and mortgage rates has grown more distant, with spreads widening appreciably as new Fed action became more likely. Underlying interest rates have gone down considerably more than their mortgage counterparts, muting some of the beneficial effects that low rates can provide to some borrowers.

Thus, the second component of the Fed’s plan: The Fed announced that they will now start to use money coming in from their still-massive holdings of mortgages — prepayments from refinancing, maturing loans and regular principal payments — to purchase MBS coming into the market. Essentially, the Fed has stated that they will be lowering rates, that mortgages are directly targeted, and if the investor market doesn’t want to buy them for whatever reason, the Fed will be there to pick up the slack. A ready buyer in the market means that mortgage rates will decline, since the investor who is buying them cares more about beneficial economic consequence than yield or threat of loss.

Driving down interest rates is one way the Fed hopes to crowd out investors from parking their money in the safe-haven of Treasuries. If 100% guaranteed yields for Treasury offerings get low enough, investors will have strong incentive to look elsewhere for productive places to put their cash to work, and that would ultimately benefit the economy as a whole. One of the successes (if short-lived) of QE2 was the reflation of equity prices; one of the drawbacks was the ballooning of commodity prices, including metals and oil and the inflationary kick those increases left. Unlike QE2, the twist doesn’t push more money into the economy and so doesn’t carry an explicit inflation threat along with it.

Although these Fed plans will be in effect until next June, mortgage borrowers who might consider procrastinating for a while should keep this in mind: The Fed is making these changes in hopes of spurring the economy, which is pretty rough shape. It won’t happen overnight – some would say “if at all” — but should it start to work, interest rates will begin to rise as a natural course of events. That would slow refinancing down, which in turn would slow down the speed at which the Fed would be buying MBS. In our view, this suggests the largest impact on rates is most likely to come earlier in the program than later. This is not to suggest that rates are likely to rise significantly anytime soon, but that they will stop posting record lows and turn around at some point, and successful efforts to help the economy will move that date closer.”

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

30 Yr Fixed FHA

Rate 3.750

APR 4.437

Conforming 30 Yr Fixed up to $417000

Rate 3.875

APR 4.021

Conforming Jumbo 30 Yr Fixed $417001 – $729750

Rate 3.990

APR 4.130
Jumbo 30 Yr. to $1.5 Mil

Rate 4.500
APR 4.635
Jumbo 7/1 ARM $1.5 Mil (higher loan amt available)

Rate 3.490

APR 3.314

The perceived risk in investing in bonds due to potential increases in interest rates has moderated significantly due to the Federal Reserve’s announcement this weak that they plan to keep short term interest rates at their current historical lows for the next two years. With the volatility in the stock market expected to continue, the flight to safety and bonds is expected to continue, keeping interest rates down The following are some excerpts from this week’s newsletter on interest rates from HSH Associates :

” After an unprecedented whipsawing in markets this week, thirty-year fixed rate mortgages have moved to historic lows. Fifteen-year fixed rate mortgages are already there, as are adjustable rate mortgages. That said, and despite monstrous swings in influential Treasury yields, the overall effect on mortgage rates when all was said and done (so far) was little more than a reasonable decline from week to week… the overall average rate for 30-year fixed-rate mortgages decreased by twelve basis points (0.12). . .”The Fed’s reduced expectation for economic growth, lower inflation and a declaration of a long, long period of low short-term interest rates yet to come fostered the decline. “

“Conforming 30-year FRMs didn’t quite make it into record territory, falling just four basis points shy of hitting last year’s near 56-year low. Thirty-year FRM private market jumbos are now available at an average 4.87%, and are sliding deeper into record territory. With the loan limits for agency jumbos starting to decline in the market, private mortgage money for these borrowers will become more important, and it is available at fantastic rates.

That’s not to say more declines won’t come. However, with a surge in refinance activity over the past couple of weeks as conforming 30-year FRMs moved below the psychologically-important 4.5% level, lenders don’t need to compete as aggressively for your business. If you couple this with investor concerns over a new wave of inbound prepayments from refinancing plus the possible formation of a new recession (which increases delinquency and default risks) and there’s little wonder that the difference between 100%-safe Treasuries and average 30-year mortgage rates widened appreciably this week. There is apparently plenty of appetite for the safety of US Treasuries, but obviously rather less for the risks inherent in mortgage investments.”

Will the decline continue? That’s a very good question. Could the economy turn toward recession, which would lower rates? Possibly. Can inflation move from mild to outright deflation? Possibly, but the Fed is betting not, at least for the moment. There has been some “spread expansion” this week which may diminish over time, allowing rates to back down somewhat. However, now that we are past the fear of the debt ceiling debacle, and now that the actual downgrade has replaced fear of the downgrade, we again should be turning to clues about the economy and inflation to evaluate where interest rates will go. Next week brings some housing-related news (both from builders and buyers), measures of inflation, looks at the state of lending, and the forward-looking Index of Leading Economic Indicators.

To the extent that July’s economic numbers are warmer than June’s — feats which are not all that difficult to accomplish — mortgage rates will tend to respond by firming slightly. Any report that is less terrible than expected, and especially anything that quells fear or otherwise removes the immediate need for the safe-haven parking of money will serve to firm up mortgage and other interest rates. For next week, we should start the week on a lower note, but may not end there, even if we aren’t likely to go very far.”

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

30 Yr Fixed FHA

Rate
APR

3.875
4.565
Details

Conforming 30 Yr Fixed up to $417000

Rate
APR

4.250
4.399
Details

Conforming Jumbo 30 Yr Fixed $417001 – $729750

Rate
APR

4.250
4.392
Details

Jumbo 30 Yr. to $1.5 Mil

Rate
APR

4.750
4.886
Details

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

Rate
APR

3.990
3.379
Details

The following are interest rate quotes from Jan Schott Bank of America, Home Loans jan.schott@bankofamerica.com 310-802-2300 :

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.

“Market interest rates — including mortgages — began rising during the last week of June as investors moved money out of safe havens and tried to catch a stock market rise. That momentum pushed rates higher into this week as a result, but the economic news released though Friday has been bleak enough as to at least partially-reverse the increase as we move into next week.

“It should be noted that economic growth will ultimately bring higher interest rates, so knowing what to cheer for becomes a quandary: Do we cheer for lower rates, to help support refinancing and possibly home purchasing? Do we applaud more growth, lower unemployment and the resulting higher interest rates, knowing full well that this removes some of the support for housing? We’ve noted before that we would prefer 5% rates in a growing economy over 4% ones in a deep recession, and our view hasn’t changed.

The weeks-long downturn in rates probably went a little farther than it should have, and the quick upturn was too much in the other direction. At best, we’re back to the muddy middle for at least the moment. Mortgage rates should settle back next week. As with gasoline prices, they are also slower to fall than rise, but we’d bet on a five to perhaps seven basis point fall in the FRMI over the next five days.’

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

30 Yr Fixed FHA

Rate
APR

4.250
4.707
Details

Conforming 30 Yr Fixed up to $417000

Rate
APR

4.625
4.778
Details

Conforming Jumbo 30 Yr Fixed $417001 – $729750

Rate
APR

4.750
4.896
Details

Jumbo 30 Yr. to $1.5 Mil

Rate
APR

5.125
5.264
Details

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

Rate
APR

4.125
3.380
Details

The following are interest rate quotes from Jan Schott Bank of America, Home Loans jan.schott@bankofamerica.com 310-802-2300 :

Conforming 15/Year Fixed to $417,000

3.625% @ .875/pts 3.875% @ 0/pts

Conforming 30/Year Fixed to $417,000

4.500%@ .875/pts 4.750% @ 0/pts

Conforming High Balance 30/Yr Fixed to $625,500

4.625% @ .750/pts 4.875% @ 0/pts

Jumbo 5-Year Fixed ARM to $2,000,000

3.375% @ .750/pts 3.625% @ 0/pt

Jumbo 30/Year Fixed to $2,000,000

5.125% @ .625/pts 5.375% @ 0/pts

FHA Fixed to $625,500

4.500% @ .875/pts 4.750% @ 0/pts

“With a push-me, pull-you tug of war in the markets between slower growth (and lower rates) and rising inflation (and rising rates) factions, mortgage rates have come to a virtual standstill at a place which leaves them only marginally attractive from a refinancing standpoint.”

“The Federal Reserve meets next week to ponder the state of the economy, whether there are indeed inflationary concerns which need addressing, and for the first time perhaps, how the end of QE2 is likely to play out. We’ll not get any change to policy and none is warranted, but we’ll probably get an expression of concern about price pressures.

Aside from the Fed, a busy week of data is on tap. Amid signs of a little bit of cooling in the economy, mortgage rates managed to ease up a little bit this week and we have retreated from recent peaks. Rates are actually closer to their 2011 bottom than the top, but we’ve only managed to wander in a 30 basis point range over the past 16 weeks and we’re pretty solidly in the middle at the moment. Rates should be pretty flat next week, but there might be an increase of a couple of basis points if the”

“The following are interest rate quotes from Al Hermann of American/California Financial Services ,

The following are interest rate quotes from Jan Schott Bank of America, Home Loans jan.schott@bankofamerica.com 310-802-2300 :

Conforming 15/Year Fixed to $417,000

3.875% @ 1.000/pts                      4.250% @ 0/pts

Conforming 30/Year Fixed to $417,000

4.875%@ 0/pts

Conforming High Balance 30/Yr Fixed to $729,750

4.875% @ .500/pts                         5.125% @ 0/pts

Jumbo 5-Year Fixed ARM to $2,000,000

3.625% @ 1.000/pts                      3.875% @ 0/pt 

Jumbo 30/Year Fixed to $2,000,000

5.375% @ .750/pts                         5.625% @ 0/pts

FHA Fixed to $729,750

4.750% @ .875/pts                        5.000% @ 0/pts