Interest rates ease

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

“Late last year and earlier in this one, it was pretty easy to find concerns being expressed that higher mortgage rates and rising prices would make it a tough spring for potential homebuyers. As it has turned out, rates have been fairly steady for a while, and even sported a dip this week that pushed them to about six month lows. Prices of course have continued to rise, crimping affordability, but for the most part, over housing market conditions are about as good as they get.

Except there’s little for wanna-be buyers to buy, and what inventory does become available is disappearing from the market at the fastest pace since 2011, and probably at prices above asking levels. As such, there remains plenty of demand for housing, but no supply to satisfy it, so sales of homes just can’t grow.

Once finalized, and if the economy continues to manage apace, nearly all policymakers indicated that it likely would be appropriate to begin reducing the Federal Reserve’s securities holdings this year. We think that this plan could start in December, and should not have much immediate effect on mortgage rates for the foreseeable future.

A holiday-shortened week for financial markets beckons next week, with Memorial Day the unofficial start of summer here in the U.S. Despite the Monday holiday, the latter part of the week turns the month, bringing with it a slew of fresh data. Mortgage rates were fairly stable for much of this week and that is how we’ll begin next week, when we expect that Freddie Mac will report virtually no change in 30-year fixed mortgage rates come next Thursday. After that, Thursday and Friday’s cascade of data may serve to start a new push upward. We’ll see..”

The following are interest rate quotes from John Alvin of American California Financial:

30 Yr Fixed FHA
Rate APR
3.250 4.379 Details

Conforming 30 Yr Fixed up to $424,100
Rate APR
3.875 3.994 Details

Conforming Jumbo 30 Yr Fixed $424,101 – $636,150
Rate APR
4.125 4.235 Details

Jumbo 30 Yr. to $1.5 Mil
Rate APR
4.0004.094 Details

Jumbo 7/1 ARM $1.5 Mil (higher loan amt available)
Rate APR
3.500 3.762 Details

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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