Interest Rates For Buying Homes in Palos Verdes

After moving to record low levels , interest rates bumped up a small bit last week. With the volatility in the stock market expected to continue, the flight to safety and bonds is expected to continue, keeping interest rates down The following are some excerpts from this week’s newsletter on interest rates from HSH Associates :

“Although the economic data out this week couldn’t easily be characterized as “great”, the collective tenor of the available reports was arguably the most solid in some time, lending at least a little hope that we will not slide into recession as we close 2011. The improving economic news will tend to put at least some upward pressure on interest rates, and the influential 10-year Treasury was solidly over 2% by the close of business Friday. Still, even upward pressure on rates will keep them near record lows. “

“Could we be at the cusp of an uptick in the economy? September’s data seems to suggest that things have at least stopped getting worse, and with lower gasoline prices, lower interest rates via the Fed’s new emphasis and even a little bit more hiring in the mix, we just might be. What does that mean for mortgage rates? As we’ve noted here before, mortgage rates just love bleak economic news, and we’ve certainly had plenty over the last couple of months. That the data suggest some economic stabilization would also serve to stabilize rates, but there’s likely to be a long slog ahead of us yet until we get to the point where the economy no longer needs extra supports just to gin up a little growth.

For the moment, though, mortgage interest rates may tick up a couple of basis points over the next week. Investor enthusiasm at even a series of “better” reports will probably not last, given that all they’ve really confirmed is that things remain pretty lousy, and we’re working in a period of time when lackluster gains seem outsize. “

The following are interest rate quotes from Al Hermann of American/California Financial Services ,