Interest rates decline slightly 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 :

"It would be hard to characterize a four basis point decline in the average 30-year fixed rate mortgage as meaningful, but the dip in rates this week was the largest since the turn of the year, so it's at least notable, if nothing else.

The factors that produced the 2018 run-up in mortgage rates are all still largely in place, so the odds of a continued or substantial decline are still quite small. Tempering of the 2018 tendency for rates to climb comes in the form of highly-volatile stock markets, which continue to see investors looking for places to shelter cash, and some unexpected appetite among foreign investors for U.S.-backed debt.




With the economy humming, the Federal Reserve committed to a upward path for short-term interest rates (regardless of the actual number of moves that come this year) there is little likelihood that mortgage rates will decline by much from these levels. The influential 10-year Treasury put in a fairly volatile week, swinging from the low 2.70s to the low 2.80s before ending the week in the upper 2.70s range. Despite this, secondary market mandatory yields barely budged all week, so there appears to be a little disconnect between two correlated markets at the moment.

Mortgages and Treasuries serve different investors and liquidity profiles and risks of each are rather different. While yields and rates will generally move in tandem, it's not correct to think they move in exact lockstep fashion. This is where we find ourselves at the moment, with highly volatile stock and bond markets but relative calm in mortgages, and that's likely where will be come next week. There is slight downward pressure on rates as we write this late Friday, but it may or may not hold by the time Freddie Mac releases its survey results next Thursdaymorning. We think that a single basis point decline -- perhaps two -- is all that the volatility in Treasuries will be able to impart into mortgages next week."


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

30 Yr Fixed FHA
Rate APR  
3.750 4.887 Details


Conforming 30 Yr Fixed up to $453,100
Rate APR  
4.375 4.498 Details


Conforming Jumbo 30 Yr Fixed $453,101 - $679,650
Rate APR  
4.500 4.612 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  
4.000 4.562 Details


Comments (1)

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

Rates have  always bounced up and down all the time ad will continue to do so

Apr 07, 2018 05:53 PM