Interest rates firm up this week

Real Estate Agent with Remax Estate Properties - BRE #01368971

Interest rates for buying a home on the Palos Verdes Peninsula stayed steady this week but the rate of increases is slowing. The following are excerpts from the newsletter on interest rates published by HSH Associates :

"Fresh economic data this week doesn't seem to have answered the open question of whether the Fed it likely to raise short-term interest rates three times or four this year; for explicit clues to that, we'll need wait for the updated Summary of Economic Projections which will accompany the close of the Fed meeting later this month.

Near term, though, federal funds futures market place about a 89 percent chance that the Fed will move at the March meeting. This coming move was likely cemented by the February employment report, where an outsized 313,000 new jobs were filled during the month, the largest gain in hiring since July 2016.




It would be nice if next week had a dearth of data, allowing some time for markets to more fully digest the latest employment report's effect on the outlook, but that's not the case. In the coming week (which leads up to the Fed meeting on the 20th and 21st, we'll see fresh Producer, Consumer and Import Price reports, which could set interest rates on a stronger upward course, plus there will be other key reports to consider as well. Based on where we finished this week, with underlying interest rates well behaved despite a very solid employment report, we will at least begin next week with fairly level rates. After that, inflation reports will determine the direction from there. As we did with this week we think we will see another small increase in the average conforming 30-year FRM as reported by Freddie Mac next Thursday morning, probably 2-3 basis point. Given the lag for the survey, any mark"


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


30 Yr Fixed FHA
Rate APR  
4.000 5.141 Details


Conforming 30 Yr Fixed up to $453,100
Rate APR  
4.500 4.624 Details


Conforming Jumbo 30 Yr Fixed $453,101 - $679,650
Rate APR  
4.625 4.738 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  
4.125 3.926 Details


Comments (1)

William Feela
Realtor, Whispering Pines Realty 651-674-5999 No.

Well, rates will increas this year and that should make the housing markets a bit more solid

Mar 10, 2018 02:40 PM