Interest rates for buying a home on the Palos Verdes Peninsula stayed level this week.The following are excerpts from the newsletter on interest rates published by HSH Associates :
” If the economic data is mostly firm, it’s a fair bet that mortgage rates will be, too. Not all that long ago, financial markets focused on each piece of weak data, and mortgage rates found regular space to fall. Of late, though, the markets seem to be looking solely at the bright spots and paying less attention to any data that suggests there may yet be some dullness in the overall economic shine. In a climate such as this, it will likely take a fair bit of weak data (or an economic event, such as a Greek default) to push them down at all.
Even with an improving economic tenor relative to the winter and early spring, there is nothing yet to suggest that we are experiencing outsized or above-par growth that would cause a regular upward march for rates. All signals considered, the economy is certainly back on more solid footing, and this has merely returned mortgage rates to levels we visited when we were last on similar solid footing.
With the latest Fed meeting behind us and with what seems to be a more certain course ahead, one might be tempted to think that we’ll now enter a more stable period for mortgage rates. The summer doldrums are not yet upon us, though, and even with the market seemingly adjusted to the new Fed reality there are plenty of opportunities for volatility between now and September. For example, we may have a bit of a financial market event come the end of the month, when Greece must make certain payments on loans and may or may not exit from using the Euro as a currency. Also, September is a long way off and there is plenty of data coming between now and then which may make the markets nervous in one way or another. For the moment, though, it would seem that a breather is due.
With even a modestly improving backdrop, mortgage rates are firm and really don’t have much space to drop at the moment. As we write this, the brinkmanship between Greece and its creditors remains unresolved, and this could have some unknowable effects on mortgage rates next week. The deadline for a deal is Tuesday, so we’ll need to see what happens over the weekend. At the moment, it doesn’t seem as though the markets are acting in a defensive fashion as there is no evident flight-to- safety purchase of bonds to be seen anywhere. In fact, U.S. and other bonds were seeing a bit of a selloff mid-day on Friday, lifting yields.
Not knowing what will happen overseas, it would appear that we are in for pretty steady mortgage rates next week, with perhaps a touch of upward bias. Call it a couple of basis point increase overall, but all bets are off if the Greek mess isn’t resolved to the liking of the markets..”
The following are interest rates 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)