Interest Rate Update

Interest rates have remained stabile over the last couple of weeks, but have moved down a bit the last couple of weeks. Conforming loans have moved down about an eighth of a point, and 30 year jumbo loans and 7 year jumbo adjustable loans have moved down about a quarter of a point. The following are some excerpts from this week’s newsletter on interest rates from HSH Associates :

“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 ,

30 Yr Fixed FHA
Rate APR          
4.625 5.090 Details        


Conforming 30 Yr Fixed up to $417000
Rate APR          
4.750 4.904 Details        


Conforming Jumbo 30 Yr Fixed $417001 – $729750
Rate APR          
4.990 5.139 Details        


Jumbo 30 Yr. to $1.5 Mil
Rate APR          
5.375 5.516 Details        


Jumbo 7/1 ARM $1.5 Mil (higher loan amt available)
Rate APR          
4.250 3.435 Details        


The following are interest rate quotes from Jan Schott Bank of America, Home Loans 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

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 . 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.

About mmegowan

I am a realtor with Remax Estate Properties in Palos Verdes Estates. Visit my website at
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