Interest rates for buying a home on the Palos Verdes Peninsula remained steady this week.The following are excerpts from the newsletter on interest rates published by HSH Associates :
“Quiet financial markets are typical this time of year, and even though equity markets continue to notch new highs, mortgage rates remain mostly tethered in place, directionless for at least the moment.
Although underlying interest rates have firmed from their low water marks of the past couple of weeks, they’ve only lifted a bit, returning to about the average level for the month as a whole — which is to say, still very low. As the drumbeat of good economic news continues to pound, and with a Federal Reserve interested in lifting short-term rates as soon as April, how long can interest rates remain content to hang around these levels? No one knows for sure, but the picture will likely become much clearer once the haze of the holiday season lifts. Until then, rates remain hard to beat at about 18-month low levels.
Mortgage rates have little reason to move much amid thinly traded holiday markets during a time of seasonally low credit demand. It’s a reasonable bet that this will again be the case next week, when the New Year’s holiday will break up the week. After that, though, it’s quickly back to business, and we expect to see an upsurge in demand for mortgage money, mostly for refinancing but with some folks looking to grab the new 97 percent offerings from Fannie Mae and Freddie Mac to move their home purchases along, too.
The early part of the week has very little new data which would be considered market-moving; in fact, the week has a very light calendar all around. Mortgage rates are wobbling about at the moment, and more of the same is on tap for next week, when rates could bob up or down by a few basis points at most..”
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
Jumbo 7/1 ARM $1.5 Mil (higher loan amt available)