Here’s a note from Narbik Karamian from BeneGroup regarding what’s going on with Interest Rates.

So far, this morning rates have been really attractive. Mostly because of the market uncertainty about the debt issue and the possible credit downgrade. The manufacturing numbers did not help much either with almost a 4.5% decrease to slightly over 50% from 55%. If the country’s credit rating is downgraded, it will be very difficult for the government to sustain the low interest rates as it will have to offer higher returns to foreign and non-foreign investors to keep their investments in the country despite a credit downgrade.

For the first time since mid May, we are seeing 4.25% on the conforming loan limits (up to $417,000) and 4.375% on high balance loan limits (between $417,000 & 729,750) at no point. The high balance limit is scheduled to expire at the end of August, 2011 and drop to $625,000 if it is not extended. Lenders are slowly setting a cut off period for loans being submitted above $625,000.

I look forward to answering any financing question or scenario you may have.

Best Regards,
Narbik Karamian
DRE Lic: 01372576
BeneGroup, Inc.

A Premier Mortgage Brokerage and Real Estate Consulting Firm
Cell: (408) 315-2834
Fax: (408) 395-7561