Interest rates for buying a home on the Palos Verdes Peninsula rose slightly this week.The following are excerpts from the newsletter on interest rates published by HSH Associates :
“As we expected, there were several new signals available this week that the economy is firming up after as the effects of a rugged winter start to fade in the rearview mirror.
Unfortunately, housing markets are not among those firming up, as they are struggling to hold steady at best. It was reported by the Mortgage Bankers Association this week that the slump in refinance activity and a lack of a subsequent pick up in purchase activity left mortgage originations at a 14-year low. We’re not about four weeks past the end of the first quarter of 2014 and the fortunes of the mortgage market don’t appear to have improved very much since then.
As we’ve discussed here in recent weeks, there are arguably a wide range of items holding back the housing market on both the seller and buyer side. Even though they are above the 60-odd year lows set in December 2012 and nearly match last May, mortgage rates are not really part of the problem, since they remain favorable by almost any measure.
“The myriad reasons for the holdback in housing aren’t intractable problems, but it’s becoming painfully obvious that there are a lot of moving (or not moving) parts to consider here on both the buyer and seller side of the equation… and that leaves out all the still-unsettled components of the business side of the mortgage market, including still-tight underwriting standards, a lack of movement in reform (or not) of Fannie Mae and Freddie Mac, no private securitization markets to speak of, and the uncertainties injected into business models by Dodd-Frank and other new rules which govern the mortgage market.
The lack of growth in housing is no doubt also holding down economic growth. Still, there are sufficient signs accumulating that growth is managing to nudge higher, and we expect to see more of these next week. This likely means that mortgage rates will tick upward at least a little bit again, but we will continue to tread in a familiar range for the moment.
Next week, we’ll get a look some end-of-month and first of month reports. We’ll see more backwards-looking examples in the GDP report, and the Employment Cost Index, but fresher and more important reviews of manufacturing strength and the employment situation. A busy week on tap, especially later in the week, and mortgage rates can be expected to press a little higher.”
The following are interest rate quotes from American California Financial
30 Yr Fixed FHA
Conforming 30 Yr Fixed up to $417000
Conforming Jumbo 30 Yr Fixed $417001 – $625500
Jumbo 30 Yr. to $1.5 Mil