Maureen Megowan's Blog

head_left_image

Interest rates remain steady

Interest rates for buying a home on the Palos Verdes Peninsula remained steady this week . The following are excerpts from the newsletter on interest rates published by HSH Associates :

"Thanks to an early-week settling of interest rates from a soft stock market, our expected small bump for mortgage rates failed to materialize this week for the most part. That's actually a good sign, given the onslaught of new data to process and a Federal Reserve meeting to digest, situations that have produced higher rates in the not-that-distant past.

The Federal Reserve met on Tuesday and Wednesday to discuss monetary policy. No action by the central bank was expected, and none came, but we did detect perhaps a bit more confidence being expressed by the Fed in the statement that closed the two-day affair. Although the text was mostly unchanged from the prior missive, those usually noted that "Inflation is expected to rise to 2 percent over the medium term"; the latest was more absolute, stating that "inflation will rise to 2 percent over the medium term."

Futures markets had already discounted the likelihood of a move by the Fed at its next meeting in mid-March to less than a 20 percent chance, but new data in the days after the meeting took this to below 10 percent by late Friday. Our view is that a lot can change in six weeks, and if the Fed is serious about making perhaps three moves in short-term rates this year it may not want to cram them all in to the last half of 2017. We'll see how all that plays out as we go.

 

Interest rates moved higher in the days after the election, roughly held there as the Fed made a change to policy and remained there deep into holiday season. Since then, they have since mostly lacked direction. In the mid-valley between the December Fed meeting and this one (early-mid January), mortgage rates found space to ease, only to re-firm as we approached this week's central bank get-together. If the pattern holds true, we may somewhat see lower mortgage rates in the weeks ahead.

It seems to us in some ways, as has happened before, that the markets have moved in anticipation of conditions to come, and now wait to see if these conditions come to pass. The current stance for interest rates (and equities, too) is one of anticipating stronger growth, higher inflation and a more active Fed, but when will these come? Perhaps as important a question is "What happens if they don't?" There may yet be plenty of items that derail expected growth, disrupt global financial economies in ways that affect us, recurrent deflationary forces and more. The hopes of "more and better" that have pushed rates higher may or may not come to pass, or come to pass at a pace that doesn't requite mortgage rates at current levels.

This will all become clearer in time, as will assessments of whether disrupting the existing regulatory climate is considerable better than leaving it alone. For now, mortgage rates seem to us to be back in a place where they are in no hurry to run strongly in one direction or the other, at least not by much and not for long. As such, we'll figure on a wobble of a few basis points in Freddie Mac's average 30-year FRM, probably downward (but nearly equally as likely to rise)."

 

The following are interest rate quotes from American California Financial:

30 Yr Fixed FHA
Rate APR  
3.500 4.633 Details
 

 

Conforming 30 Yr Fixed up to $417000
Rate APR  
4.000 4.120 Details
 

 

Conforming Jumbo 30 Yr Fixed $417001 - $625500
Rate APR  
4.250 4.361 Details
 

 

Jumbo 30 Yr. to $1.5 Mil
Rate APR  
4.375 4.471 Details
 

 

Jumbo 7/1 ARM $1.5 Mil (higher loan amt available)
Rate APR  
3.625 3.688 Details
 

 

 

 

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.

Comment balloon 1 commentMaureen Megowan • February 04 2017 07:28PM
Interest rates remain steady
share
Interest rates for buying a home on the Palos Verdes Peninsula remained steady this week The following are excerpts from the newsletter on interest rates published by HSH Associates : "Thanks to an early-week settling of interest rates from a… more
Rolling Hills December 2016 Real Estate Market Report
share
The City of Rolling Hills had the following real estate market activity for single family residences during December 2016: Properties Sold: 2 Properties for Sale as of 12/31/16: 18 Sales have been averaging 2 homes sold per month… more
Rolling Hills Estates December 2016 Real Estate Market Report
share
The number of properties on the market in Rolling Hills Estates ( including the unincorporated area of Palos Verdes Peninsula ) is 17 homes at the end of December a 42% increase from the prior year. The number of properties sold monthly over the… more
City of Palos Verdes Estates December 2016 Real Estate Market Report
share
There are 35 homes listed for sale in the City of Palos Verdes Estates at the end of December, which is 21% lower than this time a year ago. The number of homes sold over the last 3 months, averaging 13 sales per month, is unchanged compared to… more
City of Rancho Palos Verdes December 2016 Real Estate Market Report
share
The level of inventory of homes for sale of 60 homes in the City of Rancho Palos Verdes at the end of Decenber is down about 14% compared to the end of December last year. The average number of homes sold per month over the last 3 months of 37 homes… more
Palos Verdes December 2016 Condo and Townhome Real Estate Market…
share
The inventory of unsold condos and townhomes on the Palos Verdes Peninsula of 33 units at the end of December is up approx. 44% compared to this time a year ago. The average number of sales per month over the last 3 months of 15 units per month is… more
Palos Verdes Peninsula December 2016 single family real estate market…
share
Summary: The number of homes listed for sale on the Palos Verdes Peninsula has decreased to seasonal lows, but the number of homes sold during the last three months is up 4% compared to the prior year, leading to a decrease in unsold inventory to… more
2016 King Harbor Christmas Boat Parade Dec. 10th
share
"All American Holiday" SALUTE TO THE RED, WHITE AND BLUE! Decorate your boat or paddle craft and help make the 2016 boat parade a success. Don't know how to begin decorating your boat - no worries we have the Sea Scout elves available to… more
San Pedro Holiday Boat Parade this Saturday
share
The 2016 Holiday Parade of Boats in Los Angeles Harbor will be held this Saturday, December 3rd beginning at 6 PM This annual parade, celebrating the 54th year with the theme ‘Hollywood at the Harbor, ’ marks the start of the Holiday Season here in… more
Interest rates move up this week
share
Interest rates for buying a home on the Palos Verdes Peninsula moved up this week The following are excerpts from the newsletter on interest rates published by HSH Associates : "The uptrend in mortgage rates carried into this week, but… more