Maureen Megowan's Blog


Interest rates decline slightly

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 :


"The Fed has certainly made it as clear as they can that the economy is performing close to a level which makes it right for a move in the short-term interest rates they control. Markets have mostly steeled themselves and prepared for the change; however, and although the certainty is pretty high, it's not a 100 percent done deal that a move will occur at the next meeting in December. There yet remains a fair bit of data which might be sufficient to push us over that edge, or not, or some unforeseen market episode (such as occurred at the end of the summer) to give the Fed pause, much as it did in September.

So we and markets wait and watch data along with the Fed looking for clues and answers. Is the economy heating up, or merely grinding along? Are we near "full employment" or not? Are price or wage pressures forming somewhere, threatening to break into more broad-based inflation, and if so, how soon? Are consumers spending their money freely, or not so much? Is housing continuing to exhibit strength despite firming interest rates of late... and the promise of more to come? These questions, and easily dozens of others, all need at least educated guesses if not outright answers in the next few weeks. Suffice it to say that almost all decisions by the Fed require are based a bit on faith, since they must be made based on expectations of the future.

One thing is pretty clear, though: Now in a prepared-for-the-Fed stance, mortgage rates aren't going anywhere very fast until something pushes them one way or another.




It's a holiday week next week, with three-day workweeks for many. Despite that, a fair bit of new data is due out to be digested along with Thanksgiving dinner, including an update to GDP, new and existing home sales, personal income and spending, and more. The retailer's "Black Friday" is also upon us, and early returns will provide an indication if consumers will be spending more freely for the holiday season. Mortgage rates may find a little space to wander before the holiday, but we might see a basis point or two decline from this week's levels."


The following are interest rates quotes from American California Financial:

30 Yr Fixed FHA
Rate APR  
3.375 4.506 Details


Conforming 30 Yr Fixed up to $417000
Rate APR  
3.875 3.994 Details


Conforming Jumbo 30 Yr Fixed $417001 - $625500
Rate APR  
4.125 4.235 Details


Jumbo 30 Yr. to $1.5 Mil
Rate APR  
4.125 4.219 Details


Jumbo 7/1 ARM $1.5 Mil (higher loan amt available)
Rate APR  
3.500 3.419 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 . 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 • November 22 2015 03:07PM


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