Interest Rates Stay Flat This week

Interest rates for buying a home on the Palos Verdes Peninsula stayed flat this week, but increases are expected.The following are excerpts from the newsletter on interest rates published by HSH Associates :

“Mortgage rates stepped back a little this week, but all indications are that an uptick is imminent, as the underlying interest rates which help to govern fixed-rate mortgages have firmed up measurably in recent days.

While the Ukraine troubles continue to concern investors the situation does appear to have at least stopped worsening for the moment. We might say as much about the economy; although the freshest data covering it is still revealing a mixed bag of results, at least some key indicators managed to improve a little bit. There is also some hope that rough winter weather is to blame for any subpar numbers, and if that’s the case, an uptick in growth and mortgage rates is likely in the offing.

While the rough economic period of the last couple of months may or may not fade quickly, the most recent evidence is sufficient to suggest that it is fading. If this turns out to be the case, it’s reasonable to expect that interest rates will nudge away from their recent lows and that the Federal Reserve will continue to trim QE apace. Any homeowners hemming and hawing about waiting for lower rates to pull the trigger on a HARP refinance should consider getting underway before too much more time passes. As they will remain favorable despite any small rise, interest rates are of somewhat less consequence to potential homebuyers, an audience who is arguably more concerned with both home prices and a lack of desirable properties than a few basis point change in rates.

More new economic clues will come next week and mortgage rates will be firming a little. We’ll see if retail sales have picked up, get a look at producer prices and early March readings for consumer sentiment, among other things. If the change in underlying interest rates is any guide, we’ll take back this week’s dip plus a few basis points, a move probably totaling 8 to 10 basis points in all. “

The following are interest rate quotes from American California Financial: