Maureen Megowan's Blog

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Interest rates ease a bit this week

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

"As financial markets begin to look past the disappointing second quarter GDP report, the focus turns from history (the second quarter ended weeks ago) to more current data. Is there economic acceleration? Has the Brexit vote seriously derailed activity? What combination of data might make the Fed move in September... or stay pat again?

The Brexit vote's disruption prompted at least one central bank into action, as the Bank of England both chopped its primary lending rate in half (to 0.25 percent), re-started a sovereign-bond buying program last operated in 2012 and will even begin to buy certain private corporate bonds, all in an effort to try to ward off concerns about weakening economic conditions as a result of the vote to leave the European Union. Although data of such weakening to date is scant, measures of consumer and business moods have turned decidedly darker, perhaps presaging troubles to come.

On this side of the pond? Things are pretty good and may get even better. This provides a counterbalance to the actions in the U.K., and while mortgage rates had been easing a bit this week, we seem poised to retrace those steps next week.

 

 

Credit conditions for mortgage borrowers continued to ease around the fringes in the second quarter. According to the latest Senior Loan Officer opinion survey from the Federal Reserve, about 11.5 percent of respondent banks loosened the reins for Fannie and Freddie-eligible loans, and some eased conditions for jumbo and non-QM borrowers as well. The report does not detail what forms these loosenings take or which specific lenders are making them, but our guess is that it is merely reductions in overlays for certain borrowers or products that is the proximate cause.

After the usual first week of the month cascade of data has passed, and left a largely positive wake, we wend out way into next week. While not quite a desert of data, the lesser slate of news still has some significant elements - worker productivity, wholesale inventories, import and export prices, retail sales and more. We'll learn more about whether the unsettled markets in July had repercussion (and if so, how considerable). We'll also do so with interest rates on a firming note; depending on the how the data flows as the week progresses, we will most likely end up with a slight increase in mortgage rates, probably totaling 3-4 basis points, but possibly enough to take back all of this week's decline."

 

The following are interest rate quotes from American California Financial:

 

30 Yr Fixed FHA
Rate APR  
2.875 3.999 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  
3.750 3.842 Details
 

 

Jumbo 7/1 ARM $1.5 Mil (higher loan amt available)
Rate APR  
3.125 3.454 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 2 commentsMaureen Megowan • August 05 2016 06:25PM

Comments

Hi Maureen, thanks for sharing the information about current mortgage interest rates.

Posted by Sybil Campbell, REALTOR® ABR, SFR, SRES Williamsburg, Virginia (Long and Foster REALTORS® 5234 Monticello Ave Williamsburg, Virginia) over 2 years ago

Maureen, nice to hear for our buyers on the hunt for their dream home this week.

Posted by Joan Cox, Denver Real Estate - Selling One Home at a Time (Metro Brokers - House to Home, Inc. - Denver Real Estate - 720-231-6373) over 2 years ago

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