Mortgage Interest Rates

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

“Mortgage rates spent a good part of the spring on following the economy down but do seem to be leveling off as we step into Summer.”

“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 3.39%, up just three 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… . With optimism flagging and economic expectations being ratcheted down to a great degree, mortgage rates have probably fallen about as far as they can at the moment. Given present levels for rates, and if they hold, entering the summer doldrums might give some folks a chance to refinance or even buy a home before heading to the beach. Aside from the Fed, there is a very light calendar of economic data on tap. On balance, that means less bad news in the headlines, and mortgage rates may firm up by a couple of basis points.“

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

The following are interest rate quotes from Jan Schott Bank of America, Home Loans [email protected] 310-802-2300 :

Conforming 15/Yr Fixed to $417,000

3.500% @ 1.000/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

5.000% @ .500/pt 5.125%@ 0/pts

FHA Fixed to $729,750

4.500% @ .750/pts 4.750% @ 0/pts