Mortgage Rates Go down again

By
Real Estate Agent with Remax Estate Properties - BRE #01368971 DRE #01368971

Interest rates have gone down again over the last week, and mortgage rates for Jumbo loans are particularly attractive, down to the low 5% level.The following are some excerpts from this week's newsletter on interest rates from HSH Associates :

"The increasingly weak economic outlook has driven mortgage rates to 2011 lows. While we remain about a third of a percentage point above our October 2010 rock-bottom levels, we should be nearing a place where refinancing opportunities start to show for an increasing number of homeowners. "

"Given the wide differential in interest rates, at least some borrowers should be considering hybrid 5/1 ARMs; whose five-year fixed periods now average just 3.42%, down 7 hundredths of a percentage point from last week. Certainly, there are savings to be had for borrowers willing to accept some future interest-rate risk."

The downward pressure on interest rates is primarily due to the poor economic reports which were recently released which caused a large downward move in the stock market. This led many investors to a flight to safety with increased demand for Tresury securities. This increase in demand led to increased prices of T bills and thus lower yields and a general decrease in interest rates including those of 10 year Treasury securities which serve as a guideline for mortgage rates.

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

 

       

4.490

4.642

Details

       

 

Conforming Jumbo 30 Yr Fixed $417001 - $729750

Rate

APR

 

       

4.625

4.770

Details

       

 

Jumbo 30 Yr. to $1.5 Mil

Rate

APR

 

       

5.000

5.138

Details

       

 

Jumbo 7/1 ARM $1.5 Mil (higher loan amt available)

Rate

APR

 

       

3.875

3.318

Details

       

The following are interest rate quotes from Jan Schott Bank of America, Home Loans jan.schott@bankofamerica.com 310-802-2300 :

Conforming 15/Yr Fixed to $417,000

3.500% @ .875/pts              3.875% @ 0/pts

 

Conforming 30/Yr Fixed to $417,000

4.375% @ .750/pts               4.625% @ 0/pts

 

Conforming High Balance 30/Yr Fixed to $729,750

4.500% @ .625/pts              4.750% @ 0/pts

  

Non-Conforming 5/Yr Fixed to $2,000,000

3.500% @ .500/pts               3.750% @ 0/pts

 

Non-Conforming 30/Yr/Fixed to $2,000,000

4.875% @ .875/pt                5.125%@ 0/pts

  

FHA Fixed to $729,750

4.375% @ .750/pts              4.500% @ 0/pts

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Rainmaker
1,442,034
Andrew Mooers
MOOERS REALTY - Houlton, ME
Northern Maine Real Estate-Aroostook County Broker

Interest rates are so low and attractive. My first home in the early 1980's was 12.25% fixed and I thought what a deal I Donald Trump negotiated when regular rates were adjustable 16% and climbing.

Jun 06, 2011 04:16 PM #1
Rainmaker
192,800
Carla Harbert
www.LorainCountyHomeSales.com - Avon, OH
RE/MAX Omega: Lorain-Medina County Area

These interest rates are simply amazing! But most buyers will not even consider an arm loan with fixed rate loans being so attractive. Nice to know!!

Jun 06, 2011 04:16 PM #2
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Rainmaker
763,293

Maureen Megowan

Palos Verdes Real Estate Blog
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