Interest rates dip

Interest rates for buying a home on the Palos Verdes Peninsula declined slightly last week.The following are excerpts from the newsletter on interest rates published by HSH Associates :

“A light week of economic data failed to find produce much to get excited about or provide much direction for mortgage rates. The Federal Reserve meets next week to ponder all the available data with regards to the economy and how it pertains to any policy action. With mostly weak economic data and soft inflation readings to consider, there is about a zero chance that any change in policy will come.

More likely, the Fed will repeat much of it’s last statement on policy, released after the close of the September meeting, where they expressed concern about low levels of inflation and the effects of stumbling overseas economies on our own prospects. To that end, China unexpectedly trimmed their key interest rate a quarter percentage point this week, hoping to goose a flagging economy, and there are some ruminations that more stimulus from the ECB may be in the offing. Both are acknowledgments that previous efforts have not yet had the desired stimulative effects and that sluggish growth remains the order of the day.

Of course, the U.S. economy doesn’t operate in a vacuum, and attempts to revive over there may put additional pressure on already sore economic spots here. For the moment, this is exerting some downward pressure on mortgage rates.

Mortgage rates and other interest rates are going nowhere fast. The strength of recent data is insufficient to push them higher, the Fed remains on the sidelines and and there’s still not much by way of broad price pressures to be concerned about. A fair bit of data comes our next week, as does the first look at third quarter GDP, and of course there is the Fed meeting to break up the 5-day string. With the Fed on hold, and with any good news on housing or hiring likely offset by what will probably be poorer ones for GDP and durable goods orders, it’s more likely than not we’ll just continue the sideways drift we’ve endured of late, one with perhaps a slight downward bent, if anything. We’ll figure on seeing just about flat mortgage rates again next week.”

The following are interest rates quotes from American California Financial:

30 Yr Fixed FHA
Rate 3.250APR 4.379
Conforming 30 Yr Fixed up to $417000
Rate 3.750

APR  3.869

Conforming Jumbo 30 Yr Fixed $417001 – $625500
Rate 3.875

APR 3.983

Jumbo 30 Yr. to $1.5 Mil
Rate 4.000

APR 4.094

Jumbo 7/1 ARM $1.5 Mil (higher loan amt available)
Rate 3.250

APR
3.246

For information about buying and selling a home on the Palos Verdes Peninsula, see my website at http://www.maureenmegowan.com .

About mmegowan

I am a realtor with Remax Estate Properties in Palos Verdes Estates. Visit my website at http://www.maureenmegowan.com
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