Interest rates have increased about 1 percentage point over the last month from their historic lows.The following are excerpts from the newsletter on interest rates published by HSH Associates :
“The aftermath of the Fed’s meeting and Mr. Bernanke’s press conference remarks continued to roil markets this week, but there are some indications that the “sell everything and run” panic has subsided.
Aside from markets growing somewhat more accustomed to the idea of having less Fed influence in the market at some point, the more relaxed stance was the result of the efforts of several Federal Reserve governors and regional bank presidents taking pains to note that the markets may be misinterpreting the Fed’s intentions. According to these folks, Fed policy hasn’t changed. Unfortunately, until proven otherwise by action, inaction or by contrary incoming data, it has.
Mortgage borrowers have had a rough time of it over the past few weeks and especially the past few days. It has been some time since we had a one-point or more rise in rates over a fairly short period, let alone a near half-percentage point rise over just a few days. Although there are few market players who remain that might remember such swings, and not that anyone likely cares, but over the long history of HSH we have seen a number of these kinds of spikes. Although no longer commonplace, wide and sizable swings in rates were seen often enough back in the 1980s, for example, and at rates which were multiples of today’s cheap credit.
After popping strongly higher on 6/20, 6/21 and 6/24, mortgage rates moderated as the week progressed, improving by more than 20 basis points from Monday’s 4.63% daily conforming 30-year fixed rate mortgage to Friday’s 4.42%. Although markets remain tense and wary, mortgage rates seem poised to slip backwards as we move into next week. ”
The following are interest rate quotes from Al Hermann of American California Financial:
30 Yr Fixed FHA
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)