Interest Rates remain near record lows

Interest rates eased down again , and remain near historical lows. With the volatility in the stock market expected to continue, the flight to safety and bonds is expected to continue, keeping interest rates down The following are some excerpts from this week’s newsletter on interest rates from HSH Associates :

“Italy joined Greece in spooking the markets this week, and safe-haven money again flowed into the US Treasury markets, pressing interest rates down. As fixed mortgage rates follow Treasuries, they also found some space to decline, and are within a stone’s throw of record lows again.

According to the Fed’s latest survey of Senior Loan Officers, underwriting standards for residential mortgages are essentially unchanged with perhaps a slight easing tone over the last three months. Fannie and Freddie’s underwriting standards have been firm for some time, and with most loans being passed along to them, it’s little wonder that standards remain fast. However, the recent change to lower the loan limits for conforming loans in certain areas has expanded the chance for private money and lending standards to get back into the market, and we may see if this resulted in easing standards and more availability of credit for certain borrowers by the time the next report is due.

A slightly fuller economic calendar comes next week, when we’ll get a look at retail sales, housing starts and builder sentiment, leading indicators and producer and consumer price reports. There’s no reason to expect that any of them will change the interest rate picture to any great degree, and most of the focus this fall has been on the mess in Greece, Italy, Spain and thereabouts. A wobble of a couple of basis points in either direction is equally likely, but no matter, since rates will hang around these levels and just above record lows, regardless.”

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 Loans to $417,000

5 Yr Fixed: 2.375% @ 1.000/pts 2.750% @ 0/pts

30 Yr Fixed: 4.000% @ .625/pts 4.250% @ 0/pts

Conforming High Balance to $625,500

5 Yr Fixed: 2.500% @ 1.000/pts 2.875% @ 0/pts*

30 Yr Fixed: 4.000% @ .875/pts 4.375% @ 0/pts

Non-Conforming Loans to $2,000,000

5 Yr Fixed: 3.000% @ .875/pts 3.250% @ 0/pts**

30 Yr Fixed: 4.500% @ .375/pts 4.625% @ 0/pts

FHA Fixed Loans to $625,500

30 Yr Fixed: 4.000% @ 1.000/pts 4.250% @ 0/pts