Maureen Megowan's Blog

head_left_image

Interest rates move up

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

"Bond markets exhibited a little bit of nervousness this week, and as is often the case, mortgage rates are firming as a result. The ongoing accumulation of solid economic news both ere and abroad plus some new concerns about inflation were enough to unsettle investors who have come to enjoy the reliability of low inflation and global central bank support.

There continue to be signals that the long run for extraordinary quantitative easing is coming to an end soon. The U.S. has already started down a path of undoing its programs, and in fact is accelerating the process this month. 

The influential yield on the 10-year U.S. Treasury moved above decisively above the 2.5 percent mark and ran close to 2.6 percent for a time before settling back a little as the week came to a close, but the latest bump in yields should be sufficient to push conforming 30-year FRMs over the 4 percent mark for the first time since last July.

It bears noting that mortgage rates would have already cracked the 4 percent mark, but the "spread" over the 10-year Treasury has shrunk notably since a near-term mortgage rates bottom last September. Since then, the 10-year TCM has risen from a weekly average of 2.07 percent to about 2.5 in the latest week, a rise of 43 basis points. The average conforming 30-year FRM reported by Freddie Mac moved up less than half this, rising 21 basis points from 3.78 percent in September to 3.99 percent this week. Spreads have shrunk from 171 basis points to just 149, about a dozen fewer than is typically seen, so not all of the increase in yields is being passed along to mortgage borrowers. Most likely, this is due to pricing competition among lenders trying to keep volumes up as refinancing activity dwindles due to higher rates. However, as will all things, there are limits, and we may be at or close to them, so any lift in yields becomes more likely to be passed along to borrowers

 

 

 

We were bound to see 30-year mortgage rates trek over the four percent line at some point, and it appears that we have reached that point. Be prepared for "mortgage rates at highest point since July"-type headlines next week, as we think we'll see a five or six basis point increase in the averages Freddie Mac will report. In the excitement, it's a good idea to keep in mind that rates were above 4 percent for fully 20 weeks of 2017, so it's not like we're entering uncharted waters."

The following are interest rate quotes from John Alvin of American California Financial:

 

30 Yr Fixed FHA
Rate APR  
3.500 4.633 Details
 

 

Conforming 30 Yr Fixed up to $424,100
Rate APR  
4.000 4.120 Details
 

 

Conforming Jumbo 30 Yr Fixed $424,101 - $636,150
Rate APR  
4.250 4.361 Details
 

 

Jumbo 30 Yr. to $1.5 Mil
Rate APR  
4.250 4.345 Details
 

 

Jumbo 7/1 ARM $1.5 Mil (higher loan amt available)
Rate APR  
3.750 3.747 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 0 commentsMaureen Megowan • January 14 2018 09:34PM
Interest rates move up
share
Interest rates for buying a home on the Palos Verdes Peninsula moved up a bit this week The following are excerpts from the newsletter on interest rates published by HSH Associates : "Bond markets exhibited a little bit of nervousness this… more
Mortgage Interest Rates rise slightly
share
Interest rates for buying a home on the Palos Verdes Peninsula remained level this week The following are excerpts from the newsletter on interest rates published by HSH Associates : "Largely backing and filling for almost all of the fall so… more
Rolling Hills September 2017 Real Estate Market Report
share
The City of Rolling Hills had the following real estate market activity for single family residences during the third quarter of 2017 Properties Sold: 3 Properties for Sale as of 9/30/17: 25 Sales have been averaging 1 home sold per… more
Rolling Hills Estates September 2017 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 24 homes at the end of September a 20% decrease from the prior year. The number of properties sold monthly over the… more
City of Palos Verdes Estates September 2017 Real Estate Market Report
share
There are 56 homes listed for sale in the City of Palos Verdes Estates at the end of September, which is 3% less than this time a year ago. The number of homes sold over the last 3 months, averaging 17 sales per month, is 18% higher compared to… more
City of Rancho Palos Verdes September 2017 Real Estate Market Report
share
The level of inventory of homes for sale of 86 homes in the City of Rancho Palos Verdes at the end of September is down about 14% compared to the end of September last year. The average number of homes sold per month over the last 3 months of 40… more
Palos Verdes September 2017 Condo and Townhome Real Estate Market…
share
The inventory of unsold condos and townhomes on the Palos Verdes Peninsula of 28 units at the end of September is down approx. 28% compared to this time a year ago. The average number of sales per month over the last 3 months of 18 units per month… more
Palos Verdes Peninsula September 2017 single family real estate…
share
Summary: The number of homes listed for sale on the Palos Verdes Peninsula has decreased to seasonal levels, but the number of homes on the market at the end of September is down 13%, but the number of homes sold during the last three months is up… more
Interest rates go down slightly to near 2017 lows
share
Interest rates for buying a home on the Palos Verdes Peninsula eased this week The following are excerpts from the newsletter on interest rates published by HSH Associates : "Partly due to increasingly bellicose saber-rattling between the U. S… more
Rolling Hills June 2017 Real Estate Market Report
share
The City of Rolling Hills had the following real estate market activity for single family residences during the second quarter of 2017 Properties Sold: 6 Properties for Sale as of 6/30/17: 27 Sales have been averaging 2homes sold per… more