Interest rates moved down a bit over the last week or so. The followingis an excerptfrom this week’s newsletter on interest rates from HSH Associates:

“Political turmoil in the middle east has presented a opportunity for homebuyers and refinancers to grab slightly lower rates. Rates have eased off by about an eighth-percentage point over the past two weeks.

That improvement is largely related to a flight-to-safety buy of Treasury bonds. Yields on ten-year US Treasuries (which influence fixed mortgage rates) have dropped by perhaps 20 basis points or so ove that time, dragging mortgage rates in the same direction, if to a lesser degree.

As long as the US remains the place to stash cash when these global events occur, at least some benefit will accrue to American mortgage seekers. However, these events and any benefits are of unpredictable duration, so folks actively engaged in the mortgage process would do well to move quickly to lock in rates and secure transactions.

One thing is true, though: Relative to where we are, in terms of mortgages and real estate markets, the path behind us is a mess and the path forward uncertain. As we work though this unclear transition, markets may or may not react in predictable ways or even ways they have in the past given similar circumstances. Uncertainty creates risk, and risk usually creates higher interest rates, not lower.”

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

Weekend Rates – Purchase Specials

Friday, February 25, 2011

Conforming 15/Yr Fixed to $417,000

4.000% @ 1.000/pts 4.250% @ 0/pts

Conforming 30/Yr Fixed to $417,000

4.875% @ .125/pt 5.000% @ 0/pts

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

4.875@ .625/pts 5.125%@ 0/pts

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

4.125 @ 1.000/pts 4.500% @ 0/pts

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

5.625%@ .500/pt 5.750%@ 0/pts

FHA Fixed to $729,750

4.750%@ 1.000/pt 5.250%@ 0/pts

Rates based on 20% down, FICO score of 740 or greater, 30/day pricing. .FHA is based on 3.5% downpayment, FICO 620, 30/day pricing. Rates not guaranteed and subject to change daily. Pricing adjustments may apply.

For more information about Palos Verdes and South Bay Real Estate and buying and sellinga homeon the Palos Verdes Peninsula, visit my website at https://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.