Interest rates move up this week

By
Real Estate Agent with Remax Estate Properties - BRE #01368971

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

"The uptrend in mortgage rates carried into this week, but certainly with less velocity than we've seen since the election was decided two weeks ago. Where rates will go from here depends on a host of factors, not the least of which is incoming economic data and how this will affect any policy decisions by the Federal Reserve.

Minutes from the November 2 central bank get-together were released this week. The discussions and details firmed up the suspicion that a rate hike is coming shortly, as the minutes noted that "Most participants expressed a view that it could well become appropriate to raise the target range for the federal funds rate relatively soon..." and went on to say that "Some participants noted that recent Committee communications were consistent with an increase in the target range for the federal funds rate in the near term and or argued that... such an increase should occur at the next meeting. A few participants advocated an increase at this meeting...". With this as a backdrop, the collective opinions of "most", "some" and "a few" all point to a change in policy come December. There was no mention of any concern about any effects of the then-imminent presidential election, so it isn't clear if they might view the unexpected outcome as disruptive to their policy plans or not.

The recent rise in mortgage rates shouldn't do much damage to the housing market. Rates are only about at levels we began 2016 at, and not much of a deterrent to the desire to buy a home. That said, it will likely be a few months before we see if there are effects, but at least as far as available data goes, the market is doing fairly well.

 

Markets are closed for the Thanksgiving holiday on Thursday, and Friday is certain to be a thin day in financial markets, even as the retailer's Black Friday bonanza (and the poorly-named "cyber mondayy") give us a sense of how the consumer is feeling about spending money. After that, the usual first week of the month slew of data is due out. As other interest rates edge higher still, mortgage rates are also firming a little bit, but the selloff looks a little tired at this point. We'll likely see another 5 basis point or so rise in Freddie's conforming 30-year fixed rate mortgage by the time next week comes to a close."

 

The following are interest rate quotes from American California Financial:

30 Yr Fixed FHA
Rate APR  
3.500 4.633 Details
 

 

Conforming 30 Yr Fixed up to $417000
Rate APR  
4.000 4.120 Details
 

 

Conforming Jumbo 30 Yr Fixed $417001 - $625500
Rate APR  
4.250 4.361 Details
 

 

Jumbo 30 Yr. to $1.5 Mil
Rate APR  
4.375 4.471 Details
 

 

Jumbo 7/1 ARM $1.5 Mil (higher loan amt available)
Rate APR  
3.375 3.570 Details
 

 

 

 

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Topic:
Lending / Financial
Location:
California Los Angeles County Palos Verdes Estates Lunada Bay
Groups:
Realtors®
RE/MAX Active Rain Bloggers
Mortgage Solutions
RE/MAX REAL ESTATE NETWORK
Luxury Home Agents

Spam prevention
Show All Comments
Rainmaker
3,514,442
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

Wgy are lebdeers so up in arms about a pitance of an increase.  I have yet have a client this year drop out because of the rates increasing.

Look at health care...that is going up double digets in percentage.  I am losing buyers left and right.  There is your REAL  danger!

Nov 27, 2016 03:00 PM #1
Ambassador
1,710,481
Michelle Carr-Crowe-Top 1% Diamond Certified Real Estate Team Sells Cupertino San Jose Homes-Just Call 408-252-8900
Get Results Team...Just Call (408) 252-8900! - San Jose, CA
Family Helping Families Buy & Sell Homes 40+ Years

Thank you for an informational post on your local market.

Nov 27, 2016 04:47 PM #2
Rainmaker
1,076,007
Laura Allen, Lake Tahoe - Truckee Real Estate for Sale www.TahoeLauraLuxuryHomes.com
Coldwell Banker, Tahoe City, CA (530) 414-1260 - Tahoe City, CA
Tahoe Real Estate Agent Helping Buyers and Sellers

Maureen Megowan - Interest rates are moving up - it's time to get off the buyer fence!  Nice update!

Nov 28, 2016 05:20 PM #3
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Rainmaker
869,331

Maureen Megowan

Palos Verdes Real Estate Blog
Ask me a question
*
*
*
*
Spam prevention

Additional Information