Interest rates for buying a home on the Palos Verdes Peninsula edged slighly up this week . The following are excerpts from the newsletter on interest rates published by HSH Associates :
“Without new pressure from abroad, mortgage and other interest rates have climbed off their recent bottoms and settled into a mostly directionless pattern, at least for the moment. It’s not clear whether this is a posture that indicates that the initial fallout from the Brexit vote last month has been completely assessed by markets and judged to be of little immediate consequent or whether it’s more a case of waiting for the other shoe to drop.
Arguably, it’s the former: As least so far, evidence of any damage is limited, at best, and the U.S. economy at least seems to still be plodding along, if at perhaps a faster pace in the second quarter than it achieved in the first. How much faster is a matter of speculation at the moment, but we’ll get at least the initial answer to that next week.
To the extend that the U.S. economy isn’t diminished, and if there are few global implications of Britain’s decision to leave the European Union, we would again begin to consider whether or not the Federal Reserve will resume its campaign of gradually lifting short-term interest rates. For the moment, it’s wait and see, with new economic data trickling out as time passes. Even an accumulation of modest data in the context of stable financial markets could be sufficient for the Fed to make a move, but until that accumulation of data happens, mortgage and other interest rates can’t really move much.
At the moment, market seems to have found a bit of stability, and mortgage rates have firmed by just a whisper off Brexit-induced bottoms. That said, there are likely still plenty of unknown repercussions and market events we’ll yet see in time. The improving tenor of at least U.S. economic data has helped to calm restive markets. Fed meeting this coming week not withstanding, markets almost have a feel akin to the summer doldrums. Given all the recent events, that’s actually a welcome change.
A somewhat heavier calendar of economic data is out next week, a period bisected by the Fed meeting. New information on consumer confidence, sales of new homes, durable goods orders and the initial reading of second quarter GDP growth are all on tap. It seems to us that the warmer tone for data will be evident again next week, and the statement closing the Fed meeting will probably be one of cautious optimism.
With warmer data and optimistic messages expected, we think there’s a good chance that we’ll see another uptick for mortgage rates of a couple of basis points (perhaps three), continuing a gradual move away from recent Brexit bottoms.”
The following are interest rate quotes from American California Financial:
30 Yr Fixed FHA
2.875 3.999 Details
Conforming 30 Yr Fixed up to $417000
3.375 3.491 Details
Conforming Jumbo 30 Yr Fixed $417001 – $625500
3.625 3.732 Details
Jumbo 30 Yr. to $1.5 Mil
3.875 3.968 Details
Jumbo 7/1 ARM $1.5 Mil (higher loan amt available)
3.375 3.570 Details