Mortgage Interest rates remain near record lows for week ending 10/31/20

Mortgage interest rates for buying a home on the Palos Verdes Peninsula remained steady near  record lows this week for conforming loans but remain higher to jumbo loans . The following are excerpts from the newsletter on interest rates published by HSH Associates:

“After an unprecedented decline in the second quarter of 2020, the economy rebounded in record fashion in the third quarter. You would expect to see these kinds of swings when you move from a nearly completely shut period to one that is nearly completely open, but even with a quarter where GDP growth was nearly double the previous record gain, the reality is that the economy has only recovered about two-thirds of the growth it lost in the short, severe cornonavirus pandemic recession.

That roaring rebound of activity was measured in a quarter that closed a month ago already, and while there still seems at least some forward momentum still evident, the strong blast of growth of that period is quieting. Worse, perhaps, is that virus is again surging, which may lead to new restrictions on economic activity, as it has overseas.

With mortgage rates holding at or very near record lows, mortgage activity continues apace. In the week ending October 23, the Mortgage Bankers Association reported a 1.7% increase in overall application for mortgage credit. As as been the case for a good while, applications for refinancing remain strong, rising by 2.5% for the week; however, in a change, applications for purchase-money mortgages joined them and managed a 0.2% increase of their own. While mild, it was the first gain in purchase apps since the week of September 18. Purchase apps have settled of late to about levels seen in early August, but refinancing does have seem to found some new upward vigor of late

Although stock markets have been a little rough-and-tumble of late, Treasury yields are on the rise over the last few days, and that suggests to us that we’ll see a couple of basis point increase at a minimum in the average offered rate for a conforming 30-year FRM as reported by Freddie Mac next Thursday morning.”

The following are interest quotes from Allen Bond of Wells Fargo:

Conforming

Jumbo