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Interest Rates drop to new 2014 lows

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

"Thirty year fixed mortgage rates managed to return to 2014 lows this week, but there are sufficient signs around to suggest that this won't be the case for long.

Interest rates have been nudged downward in recent weeks by mixed economic data, a gyrating stock market, political trouble and economic softness overseas and soothing words from the Federal Reserve about the prospects for changes in monetary policy. At various points, all have served as reasons for investors to move into the relative safety of Treasury bonds, pushing yields and mortgage rates to the bottom of a six-month-long range.

Will that change? Well, the overall range seems in no danger of being seriously broken one way or the other, but if we continue to see an accumulation of positive economic data, rates will be moving up before long.

 

"Each bit of new evidence that points to an economy picking up speed makes it more likely that rates will move higher. Although not reflected in this week's figure, the strong Philly Fed report fostered a selloff in Treasuries on Thursday, producing a corresponding lift in yields of about ten basis points. With markets in holiday mode for Good Friday, we'll not see the effect of that bump until early next week, which should be sufficient to stop the fall in rates, if nothing else.

If joined by other solid news -- anything that shows upward movement as we move away from the winter effect -- it can be expected that rates will be firming. We'll get a fair bit of fresh news next week, too, including the Chicago Fed's NAI, sales of both new and existing homes, durable goods orders and the final April reading for Consumer Sentiment. Excepting the home sales numbers, where March reports seem more likely to be sideways than not, we think that the overall tenor will be a warmer one, and that mortgage rates will lift a few basis points off this week's 2014 bottoms by the time next Friday rolls around."

The following are interest rate quotes from American California Financial

 

30 Yr Fixed FHA

Rate

APR

 

       

3.750

5.054

Details

       

 

Conforming 30 Yr Fixed up to $417000

Rate

APR

 

       

4.375

4.497

Details

       

 

Conforming Jumbo 30 Yr Fixed $417001 - $625500

Rate

APR

 

       

4.500

4.611

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

 

       

3.500

3.242

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 • April 20 2014 12:41PM

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