Mortgage Rates Go down again

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

"The increasingly weak economic outlook has driven mortgage rates to 2011 lows. While we remain about a third of a percentage point above our October 2010 rock-bottom levels, we should be nearing a place where refinancing opportunities start to show for an increasing number of homeowners. "

"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 3.42%, down 7 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."

The downward pressure on interest rates is primarily due to the poor economic reports which were recently released which caused a large downward move in the stock market. This led many investors to a flight to safety with increased demand for Tresury securities. This increase in demand led to increased prices of T bills and thus lower yields and a general decrease in interest rates including those of 10 year Treasury securities which serve as a guideline for mortgage rates.

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 jan.schott@bankofamerica.com 310-802-2300 :

Conforming 15/Yr Fixed to $417,000

3.500% @ .875/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

4.875% @ .875/pt                5.125%@ 0/pts

FHA Fixed to $729,750

4.375% @ .750/pts              4.500% @ 0/pts