South Bay and Palos Verdes Peninsula Interest Rate Update

Interest rates have dropped again to 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 :

” The poor economic climate has some market participants expecting the Fed to come out with a new grandiose program (or at least announce one) at the end of its next meeting on Sept. 20-21. More than one piece of analysis has suggested that this might come in the form of changing the mix of securities the Fed is buying to include more longer-term ones, a “twist” in the way they structure their holdings of bonds. That might push down some interest rates, but interest rates are plenty low already and still the hoped-for stimulus hasn’t come. Low interest rates along cannot solve the housing market troubles; given the forward-looking emotional and financial commitment which buying a home represents, confidence and job/income growth are arguably more important.

Anyone looking for a quick fix for the economic woes will need to keep looking. We are years into this mess at this point, and by some reckonings are in much better shape now, relative to both the depths of the mess and many other countries. That said, we are or have been in a near stasis for the recovery for 6-8 months, and the risk of faltering back into recession is a real one at this moment. Low interest rates — whether at new record lows or only near them — are likely to be with us for a long while yet as these difficult troubles slowly sort themselves out or otherwise come to resolution. Expect more of the same again next week.”

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: 2.500% @ .500/pts 2.750% @ 0/pts

30 Yr Fixed: 4.125% @ .625pts 4.375% @ 0/pts

Conforming High Balance to $625,500

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

30 Yr Fixed: 4.250% @ .625/pts 4.375% @ 0/pts

Non-Conforming Loans to $2,000,000

5 Yr Fixed: 3.250% @ .625/pts 3.500% @ 0/pts

30 Yr Fixed: 4.500% @ .500 /pts 4.625% @ 0/pts

FHA Fixed Loans to $625,500

30 Yr Fixed: 4.250% @ .125/pts 4.3750% @ 0/pts

Rates based on a Single Family Residence Purchase with 20% down, FICO score of 740 or greater, 30/day pricing. FHA is based on Single Family Residence Purchase with 3.5% down payment, FICO score minimum of 620, 30/day pricing. Points are for Rate only. Standard Closing Costs apply. Rates not guaranteed and subject to change daily. Please contact me for more information on Condo, Multifamily Units and Refinancing at 310-802-2300.