Interest Rates Remain about the Same but remain volatile

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

Interest rates ended the week about where they started, but fluctuated during the week. Following are some excerpts from this week's newsletter on interest rates from HSH Associates :

"Mortgage markets have shifted from winter tranquillity to spring volatility. Mortgage rates rose as positive assessments of the economy became more frequent and reliable. Perhaps in response to that, Fed Chairman Bernanke took pains to note the still-considerable challenges which face the economy and the Fed's low-rate stance, driving them back downward. Freshly-released minutes of the last Fed meeting from three weeks ago reflected the stronger economy leading up to that point, at least partially quashing some hopes of a new Fed QE program; this pushed rates back up again, but deepening woes in Europe and a fairly weak March employment report has started to send them back down again.

We are likely to see more fits and starts for mortgage rates in the near future.

 

So the economy has leveled for the moment, and even might be exhibiting signs that it is not completely immune to the troubles abroad as well as here. It could be said that a little too much optimism formed too quickly, that markets got ahead of themselves or even that market players have been caught leaning one way or the other too strongly. Characterize it the way you like, but for the moment, the flare in mortgage rates of a couple of weeks ago is over for the moment. Make no mistake about it, though, another will come before too long.

Rates moved a little lower this week, if unevenly so. We should begin next week on a downward note and will likely hold lower by week's end. We expect a five or six basis point fall in rates by then, pushing us closer to recent lows than highs. Among other items, we'll get a fresh look at regional economic conditions from the Fed's Beige Book, but would be surprised if it found much more than the leveling trend we've observed."


The following are interest rate quotes from Al Hermann of American California Financial 

30 Yr Fixed FHA

Rate

APR

 

       

3.500

4.177

Details

       

 

Conforming 30 Yr Fixed up to $417000

Rate

APR

 

       

3.875

4.021

Details

       

 

Conforming Jumbo 30 Yr Fixed $417001 - $625500

Rate

APR

 

       

4.000

4.140

Details

       

 

Jumbo 30 Yr. to $1.5 Mil

Rate

APR

 

       

4.500

4.635

Details

       

 

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

Rate

APR

 

       

3.740

3.288

Details

       
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Rainmaker
684,508
Kay Van Kampen
RE/MAX Broker, RE/MAX Solutions - Springfield, MO
RealtorĀ®, Springfield Mo Real Estate

Maureen, I hear rumors that there is a new flood of foreclosures coming this year and if interest rates spike, the market may take another turn.  I believe any buyer wanting to purchase this year needs to do it now.  Waiting may cost more.

Apr 07, 2012 06:28 PM #1
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Rainmaker
745,344

Maureen Megowan

Palos Verdes Real Estate Blog
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