Interest rates for buying a home on the Palos Verdes Peninsula moved down slightly this week.The following are excerpts from the newsletter on interest rates published by HSH Associates :
“If their collective actions are any indication, investors are continuing to express considerable nervousness about the U.S. economy’s ability to grow and produce inflation in light of the ongoing slump in oil and commodity prices and the unraveling of China’s stock market.
Certain of the aspects of the global slowdown are exacerbated by the Fed’s recent decision to lift short-term interest rates for the first time in nearly 10 years. Just as very wobbly financial markets gave the Fed pause in moving rates last September, it may well be that this again keeps them from making a change anytime soon, and certainly not at the meeting slated at the end of the month.
As has been the case, the unsettled global climate has proven to be to the benefit of American mortgage shoppers, and this again is the situation in which we find ourselves, with mortgage rates finding a little space to fall. While it’s not yet the traditional homebuying season, refinancing season is always open and it stands to reason that at least a few more of those will happen in the days ahead.
Modest wage growth, weak retail sales, falling prices and a struggling manufacturing sector are joined by wobbly global financial markets and super-low oil prices. With this as a backdrop, and as they are known to do, investors have scurried out of riskier investments and into safer harbors. On an immediate basis, it means that interest rates are falling and pulling mortgage rates down along with them. We wonder if some of the market maelstrom on Friday might have also been U.S. investors trying to limit exposure as markets are closed for the next three days — this was the case at times during the financial market crisis that predated the recession. Regardless, the current turmoil could persist for a while longer yet but of course won’t last forever. Mortgage rates probably have limited downside, what with (at last blush) a Fed committed to lifting interest rates perhaps multiple times in 2016. We’ll see about that as we go along.
Mortgage rates are declining a little as we write this, and so will begin next week on a downward note. With only a slight drift downward over the last couple of weeks, we suddenly find ourselves at levels last seen in November and again squarely in the middle of a year-long range, not that it took much movement to get there. We’ll figure on another 4-6 basis point dip in interest rates by the close of business next Friday.”
The following are interest rates quotes from American California Financial:
30 Yr Fixed FHA
3.250 4.379 Details
Conforming 30 Yr Fixed up to $417000
3.750 3.869 Details
Conforming Jumbo 30 Yr Fixed $417001 – $625500
3.875 3.983 Details
Jumbo 30 Yr. to $1.5 Mil
3.875 3.968 Details
Jumbo 7/1 ARM $1.5 Mil (higher loan amt available)
3.125 3.499 Details