Interest Rate Update

Interest rates bumped up about an eighth of a point over the last couple of weeks. The following are some excerpts from this week’s newsletter on interest rates from HSH Associates :

“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

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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