Interest rates moved up a bit this week but remained near record lows. The following are some excerpts from this week’s newsletter on interest rates from HSH Associates :
“A drumbeat of better economic news finally got loud enough for markets to notice. Coupled with a generally-climbing stock market, interest rates firmed a little. Mortgage rates moved to former record-high levels this week, levels which were trumpeted far and wide just a few weeks ago.
The minor move is simply a subtle reminder that yes, interest rates can also rise. At some point, they will ultimately do so, and on a regular basis. With rates so low for so long, some perspective as to what “normal” interest rates are is getting a little lost.For housing, the fundamentals of jobs growth, low prices and rock-bottom mortgage rates are having beneficial effect.
If rates hold at or near these levels, and if job growth and optimism continue to improve, we think that an actual “spring housing market” could form.
There’s not much to be said about the minor rise in rates this week. Mortgage rates go up and down all the time, and even if they were to move over the “psychologically important” level of 4%, they would still be fantastic. In the long history of mortgages, 30-year fixed rates below 4% are a very, very recent phenomena, and we were setting any number of 40 and 50-year lows even when we were above that threshold.
Will the rise continue? Probably not. There is some data which might move the market a little next week in the form of the Fed’s own survey of regional economic conditions (called the Beige Book for the color of its cover) If things are broadly improving it will show up here, as well as in the ISM report on manufacturing, and that might cause rates to hold or perhaps even move a little higher, especially if buttressed with other new data on auto sales, construction spending and durable goods orders. There doesn’t seem to be much upward momentum, but best to figure on a couple basis point rise to be safe.”
The following are interest rate quotes from Al Hermann of American California Financial :
|30 Yr Fixed FHA|
|Rate 3.600||APR4. 280||
|Conforming 30 Yr Fixed up to $417000|
|Conforming Jumbo 30 Yr Fixed $417001 – $625500|
|Jumbo 30 Yr. to $1.5 Mil|
|Jumbo 7/1 ARM $1.5 Mil (higher loan amt available)|
The following are interest rate quotes from Jan Schott Bank of America, Home Loans firstname.lastname@example.org 310-802-2300 :
Conforming Loans to $417,000
5 Yr Fixed: 2.375% @ 1.000/pts 2.875% @ 0/pts
30 Yr Fixed: 3.875% @ 1.000/pts 4.375% @ 0/pts
Conforming High Balance to $625,500
5 Yr Fixed: 2.625% @ 1.000/pts 3.250% @ 0/pts*
30 Yr Fixed: 4.000% @ 1.000/pts 4.625% @ 0/pts
Non-Conforming Loans to $2,000,000
5 Yr Fixed: 2.625% @ 1.000/pts 3.000% @ 0/pts
30 Yr Fixed: 4.125% @ 1.000/pts 4.500% @ 0/pts
FHA Fixed Loans to $729,750
30 Yr Fixed: 3.875% @ 1.000/pts 4.250% @ 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.
* High Balance Conforming 5/1 ARM requires 25% down
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.