San Diego Mortgage Rate Update for The Week of May 6, 2013

San Diego Mortgage Rates
Mortgage Rates Increased by .125%

On Friday, the Labor Department reported nonfarm payrolls rose by 165,000 in April, above the 155,000 that was expected. The numbers for February and March were also both revised higher by 114,000, increasing the four-month average to 196,000. This report caused mortgage bonds to sell off and San Diego Mortgage Rates to increase by about .125%.The unemployment rate decreased to 7.5 percent.  That is the lowest level since December 2008 and down from 10 percent in October 2009. Unfortunately, much of the drop in the unemployment rate is due to the Labor Force Participation Rate being at a 35-year low of 63.3.

The Personal Consumption Expenditures, which is the Federal Reserve’s favorite gauge of inflation, for March showed that inflation continues to be tame. This most likely influenced the decision by the Fed in their meeting last week to continue purchasing $40 billion a month in Mortgage Bonds and $45 billion in Treasuries. The program should last throughout this year and could continue into the beginning of 2014.

How did this affect San Diego Home Loans?

Over the last month, Bonds and Mortgage Rates had reached the best levels of 2013 due to some weak economic reports, but the better-than-expected Jobs Report last Friday gave Stocks a boost allowing them to close at all time highs and San Diego Mortgage Rates to move away from these best levels.

Even with the increase in rates, I was able to quote a no cost refinance at 3.49% rate and APR on a 30 year fixed mortgage of $311,500 and a principle and interest payment of $1,397.04. This was based on a credit score of 755 and a loan to value of 75%.

What Could Affect San Diego Mortgage Rates This Week?

After the busy economic calendar last week, there is only one report this week.

  • On Thursday, Weekly Initial Jobless Claims will be reported. Last week, the claims fell to 324,000. This was lower than expected and the lowest number since January 2008.

The Treasury Department will also be auctioning $72 billion in Notes and Bonds Tuesday through Thursday and which could impact San Diego Mortgage Rates.

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 San Diego Mortgage Broker and I look forward to helping you secure the best San Diego Home Loan possible.

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