San Diego Mortgage Rate Update for The Week of May 20, 2013

San Diego Mortgage Rates
Interest Rates Increased .25% This Week

The last 2 weeks have been tough on mortgage bonds and San Diego Mortgage Rates.  After nearing all time lows again a few weeks ago, San Diego Interest Rates have been on a steady incline almost each day.  We have seen mortgage bonds break through all of the major floors of support and they have yet to be able to find a bottom of support.  This has caused home loan rates to increase by about .25% – .375% over that time.

The housing reports showed some mixed news last week as Housing Starts declined by 16.5 percent in April. This was below what was expected and due in large part to a drop in apartment building activity. Housing Starts though were up 13 percent from April 2012 to April 2013. In addition, Building Permits, which is a sign of future construction, swelled by 14.3 percent, which was not expected.

The employment markets received less than stellar news last week as Weekly Initial Jobless Claims rose by 32,000 to 360,000, the highest since late March. Manufacturing is still a drag on the economy, with both the Empire State Index and the Philadelphia Fed Index coming in weaker than expected.

Retail Sales were a bright spot for April coming in above estimates, showing that consumers are resilient after pulling back spending in March. Inflation continues to remain low. In fact, the Consumer Price Index fell by 0.4 percent, the lowest rate in four years.

How did this affect San Diego Home Loans?

Even with some of these weaker reports, stocks continued to push to record highs causing money to flow out of the bond market and into the stock market.  San Diego Mortgage Rates did increase this last week and continued that trend today.

Even with the increase in rates, we still can offer 30 year fixed loans in the 3% range.  I was able to quote a refinance at 3.625% rate, 3.691% APR on a 30 year fixed mortgage of $275,000 and a principle and interest payment of $1,254.14. This was based on a credit score of 745 and a loan to value of 80%.

What Could Affect San Diego Mortgage Rates This Week?

The week’s economic calendar starts slow, but has multiple important items late this week.

  • Economic reports start on Wednesday with Existing Home Sales, followed by New Home Sales on Thursday.
  • Thursday also has Weekly Initial Jobless Claims.
  • Ending the week on Friday, Durable Goods Orders will be released for April.

The minutes from the last Federal Open Market Committee meeting will be released on Wednesday and these can have the potential to impact the markets. The Bond market will also close early on Friday, at 2:00 pm ET, in advance of the Memorial Day holiday.

If you are interested in getting a quote, please click HERE or feel free to give me a call at 619-312-0612. I am a Mortgage Broker in San Diego and I look forward to helping you secure the best loan possible.

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