In a weekly survey of 20 Los Angeles and Orange County lenders, conducted by HSH Associates for the week ended 5/27/09, the average interest rate for conforming loans of less than $417,000 increased about two-tenths of a percentage point to 5.13% ( +.35 points), up from 4.93% (+.30 points) the previous week.  Interest rates on loans over $417,000  increased even more, by approx. three-tenths of a percentage point.

The increase in interest rates, as speculated by HSH Associates, was "a combination of unclear goals in Federal Reserve quantitative easing programs, floods of new sovereign debt and shoddy treatment of GM bondholders." "Yields on the influential 10-year Treasury bond had lifted by just over a half a percentage point in a few days' time, rising from the low- to the upper-3% range and taking conforming fixed mortgage rates along for the ride. After standing at a familiar 5.03% on Tuesday, Conforming 30-year FRMs leapt to 5.29% on Wednesday and then 5.44% on Thursday before finally settling back some on Friday to 5.30%." (Note, these are nationwide averages ).

HSH associates concludes " After an unexpected flare higher this week, mortgage rates should settle back, with a probably decline of perhaps 10 basis points. The improvement in conforming 30-year fixed rate mortgages at week's end should hold, leaving us perhaps a quarter-percentage point above Spring lows."

For more about Financing  your purchase of a home on the Palos Verdes Peninsula , visit my website at http://www.maureenmegowan.com

 

For more information about Palos Verdes and South Bay Real Estate and buying and selling a home on the Palos Verdes Peninsula, visit my website at http://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.

 

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Palos Verdes Real Estate Blog - Maureen Megowan

Palos Verdes Estates, CA

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Information about the real estate and home markets of the beach communities of the South Bay of Los Angeles and the Palos Verdes Peninsula. Palos Verdes homes for sale and South Bay Los Angeles real estate. I strive to be the best real estate agent / realtor in the cities of Palos Verdes Estates, Rancho Palos Verdes, Rolling Hills Estates, Rolling Hills, Redondo Beach, Torrance, Manhattan Beach, Hermosa Beach, San Pedro and El Segundo.l


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