Interest Rates Stay at Record Lows

Interest rates remained near historicao lows to start the new year. The following are some excerpts from this week's newsletter on interest rates from HSH Associates :

"Out with the old year, in with the new. After several months of improving economic reports, optimism appears to be growing for the moment that the new year will bring steadily improving economic growth. There will no doubt be challenges both expected and unexpected as 2012 progresses, and probably, some beneficial surprises as well.

Will the housing market be one of them? Could be. Sales of existing homes are nudging higher, builders are building again (at least multifamily stock) and mortgage rates, well, mortgage rates really don't get any lower than they are at the moment and are starting 2012 at approximately 60-year lows. That said, better economic news, should it persist, will tend to bump rates higher as we go.

Aside from fantastic mortgage rates and lots of available low-priced housing stock, the key to a housing market improvement is fewer folks losing jobs and more getting them. In that regard, the end of 2011 points to a hopeful warming trend. Seasonal adjustments aside, over the past five weeks new claims for unemployment assistance have been in their most favorable pattern since March 2011. During the week ending December 31, that trend continued, with 372,000 new applications for benefits filed at state windows. Fewer people losing jobs is a key to re-building shattered consumer confidence as we roll forward.

Mortgage rates are at favorable levels, and it would take monumental economic change for better or worse to move them in either direction very much. At the moment, the warmer economic climate here is providing some much-needed distraction from the troubles in Europe, but those issues continue to influence the markets.

Will the good news continue? More clarity should come next week with the release of Retail Sales data for December, consumer borrowing, initial January consumer sentiment readings and a few other indicators. Look for little change in mortgage rates next week, perhaps a couple of basis point upward movement at most."

 
The following are interest rate quotes from Al Hermann of American California 'finaniao

 
The following are interest rate quotes from Jan Schott Bank of America, Home Loans jan.schott@bankofamerica.com 310-802-2300 :

Conforming Loans to $417,000

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

30 Yr Fixed:      3.875% @ 1.000/pts                      4.125% @ 0/pts

Conforming High Balance to $625,500

5 Yr Fixed:               2.750% @ 1.000/pts               3.000% @ 0/pts*

30 Yr Fixed:             3.875% @ 1.000/pts               4.375% @ 0/pts

Non-Conforming Loans to $2,000,000

  5 Yr Fixed:          2.750% @ 1.000/pts                       3.125% @ 0/pts

            30 Yr Fixed:       4.125% @ 1.000/pts                       4.500% @ 0/pts

FHA Fixed Loans to $729,750

        30 Yr Fixed:        4.000% @ 1.000/pts                    4.375% @ 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 and 30/day pricing.   Points are for Rate only.  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.