Mortgage interest rates for buying a home on the Palos Verdes Peninsula declined this week ending 11/1/19. The following are excerpts from the newsletter on interest rates published by HSH Associates

“Citing again “the implications of global developments for the economic outlook as well as muted inflation pressures”, and that “uncertainties about this outlook” for continued modest economic growth remain, the Federal Reserve cut interest rates for a third time in three months, lowering the federal funds target rate to 1.5% to 1.75%, a level last seen back in March 2018.With the Fed meeting behind, a couple of trends in the market changed a bit. Interest rates had been firming going into the meeting, as there were still some expectations the statement would contain language suggesting that more rate cuts were on the way. It didn’t, and in investors’ eyes, this means that the outlook for faster growth sooner isn’t likely to happen and we are more likely to slog along in a slog growth, low inflation climate for longer. Also, with a implicit not to not expect to raise rates for a good while, interest rates began to settle back again, and actually retreated pretty meaningfully as the week neared a close.

With the Fed meeting behind, a couple of trends in the market changed a bit. Interest rates had been firming going into the meeting, as there were still some expectations the statement would contain language suggesting that more rate cuts were on the way. It didn’t, and in investors’ eyes, this means that the outlook for faster growth sooner isn’t likely to happen and we are more likely to slog along in a slog growth, low inflation climate for longer. Also, with a implicit not to not expect to raise rates for a good while, interest rates began to settle back again, and actually retreated pretty meaningfully as the week neared a close.Which is where we find ourselves as we move into next week. While there is plenty more new data on tap for investors to consider, the indication for mortgage rates as we close this week is one of decline. If it holds, we think there’s a chance for a 6-8 basis point decline in the offered rate for a conforming 30-year FRM as reported by Freddie Mac next Thursday, dropping us back closer to the middle of the summer-fall range so far.”