Interest rates Increase

Excerpts from HSH Associates newsletter for the week ending July 20, 2007:

Despite downdrafts in key benchmark interest rates, mortgage rates for good-credit borrowers kept rising this week, with the average 30-year fixed-rate mortgage (FRM) posting a 52-week high of 6.88%. Holes in the subprime landscape keep appearing, and investors may be beginning to shy away from even certain good-credit quality mortgages. That disdain for buying loans may be reflected in the spread differential between the 10-year Treasury and the average 30-year FRM. This week, that gap stands at 185 basis points (1.85%), the widest in 17 months, with the implication that investors are demanding higher compensation for risk than they were just a few months ago.

                                                  Fixed Rate                   Variable

Survey Area 15 Year 30 Year Composite 1 Year Composite
NW/National 6.53% 6.88% 6.71% 6.15% 6.47%
CA/Statewide 6.61% 6.94% 6.79% 6.34% 6.56%

About mmegowan

I am a realtor with Remax Estate Properties in Palos Verdes Estates. Visit my website at http://www.maureenmegowan.com
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