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Where Are Mortgage Rates in San Diego This Week?

San Diego Mortgage Rates can change on a weekly, daily, and at volital times, an hourly basis.  It is important to understand what mortgage rates are based on, what financial reports could affect mortgage rates in the coming week, and where the current trends are taking rates.  This page may be one of the most important tools during your San Diego Home Loan process.

San Diego Mortgage Rates

What Are San Diego Mortgage Rates Based On?

The only correct answer is Mortgage Backed Securities or Mortgage Bonds. NOT the 10-year Treasury Note. The 10-year Treasury Note can trend in the same direction as Mortgage Bonds, but it is not unusual to see them move in completely opposite directions. As bonds increase in value on the market the interest rate associated with them decreases. In turn when bonds decrease in value, the interest rate rises to attract more investors to purchase bonds.

How Does Inflation Affect Bonds and Mortgage Rates?

If inflation is moving higher, the Bond’s fixed return erodes, because inflation means it will cost more down the road to buy the very same things they could today. This will cause the investor to require a higher rate on future transactions. If inflation moves higher, so will long-term rates.

When the pace of inflation declines, long-term rates tend to decline as well. This is because the buying power of the fixed payment stays stronger longer.

What Are The Economic Reports That Could Cause Movement in San Diego Mortgage Rates?

There are weekly and monthly reports that come out about the economy that affect the direction of Mortgage Rates. Weak economic reports normally causes money to flow out of Stocks and into Bonds, helping Bonds and San Diego Home Loan rates improve, while strong economic news normally has the opposite result.  A professional San Diego Mortgage Broker will have this information available at their fingertips.

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