San Diego Mortgage Rates improved last week after an up and down cycle the previous week and were able to stabilize at the lows of the year.
Last week showed housing starts spike by 7 percent in March to 1.036 million units on an annualized basis, well above the 930,000 expected. This was the largest increase since June 2008. In addition, Housing Starts were up an amazing 47 percent from the same time period last year.
Building Permits did decline slightly, but overall it was also a strong report and additional evidence that the housing sector is improving.
The reports that helped San Diego Home Loan Rates stay near the lows of the year began with the Labor Department reporting that the Consumer Price Index (CPI) declined by 0.2 percent in March. That continues to show that inflation at the consumer level remains tame.
Weekly Initial Jobless Claims rose by 4,000 to 352,000 showing no clear sign of any significant improvement as the labor market continues to limp along with no meaningful growth. To finish it off, the Empire Manufacturing Index, a measurement of the manufacturing sector, was much weaker than expected, falling to 3.1 in April from 9.2 last month.
How does this affect San Diego Home Loans?
The Federal Reserve has commented that inflation remains in check and they expect this to continue into the future. The recent lack of inflation and weak jobs data gives the Fed the ability to continue its Bond purchase program known as Quantitative Easing, which should continue to benefit Bonds and San Diego Mortgage Rates.
Just today, I was able to quote a Cash Out Refinance for $350,000 on a 7/1 ARM at 2.5% with closing costs of $2,990 and a principle and interest payment of $1,382.92. This was based on a credit score of 740 and a loan to value of 60%.
What Could Affect San Diego Mortgage Rates This Week?
This week contains a full gambit of important news from beginning to end.
- The housing market will be center stage beginning this week with Existing Home Sales on Monday and New Home Sales on Tuesday.
- We can get an idea if the economy is improving or stalling with Wednesday’s Durable Goods Orders and Friday’s 2013 Q1 Gross Domestic Product.
- Thursday brings the weekly Initial Jobless Claims.
- The week ends with the Consumer Sentiment Index for April.
Earnings season also continues and the markets will be watching these reports closely for signs regarding whether our economy is improving.
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 Mortgage Rate possible.