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Mortgage Interest Rates Stay Steady

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

"After touching three-year lows in July, mortgage rates ended the month on a flat note. The turbulence from Brexit has faded to a considerably degree, and it may just be that the summer doldrums for markets have kicked in. If so, we will likely be in for a rather directionless period for mortgage rates.

The Federal Reserve completed a two-day meeting on Wednesday this week. No change to short-term interest rates or other monetary policy tools was expected, and none came, nor was there any specific mention about Brexit or the market turbulence the vote caused around the globe. As far as how markets are at the moment, the Fed simply said that "Near-term risk to the economic outlook have diminished."

After the meeting, and with no specific indication that a September move was increasing in likelihood, bond markets rallied and yields declined a bit. That may help mortgage rates to fall back by a couple of basis points in the days ahead, but there's really not much happening at the moment.

 

 

As has often been the case this year, mortgage rates aren't going anywhere fast. Even the "plummet" from the Brexit vote was a decline of a little more than an eighth of a percentage point... we saw as much with no Brexit back in late January-early February. Next week brings the first week-of-the-month cascade of new data, and we should start to see Brexit-induced disruptions (if any) in each new piece of data that covers July. This will include the employment reports, twin ISM surveys, auto sales and a few other items. We think that the effects will be more muted than not, and with that in mind, mortgage rates may edge a few basis points higher by the time the end of the week rolls around."

 

The following are interest rate quotes from American California Financial:

 

30 Yr Fixed FHA
Rate APR  
2.750 3.872 Details
 

 

Conforming 30 Yr Fixed up to $417000
Rate APR  
3.375 3.491 Details
 

 

Conforming Jumbo 30 Yr Fixed $417001 - $625500
Rate APR  
3.625 3.732 Details
 

 

Jumbo 30 Yr. to $1.5 Mil
Rate APR  
3.875 3.968 Details
 

 

Jumbo 7/1 ARM $1.5 Mil (higher loan amt available)
Rate APR  
3.250 3.512 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 • July 29 2016 05:43PM

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