San Diego Mortgage Rate Update for The Week of March 11, 2013

San Diego Mortgage Rates
San Diego Mortgage Rates Increase

The financial reports released last week caused mortgage bonds to fall each day of the week. This caused San Diego Interest Rates to increase to the highest levels in several months.

The February Jobs Report showed that 236,000 jobs were created, well above the 165,000 that was expected. Private employers added 246,000 new jobs in February, also well above expectations.

In addition, the Unemployment Rate fell to 7.7% from 7.9%, a four-year low. What doesn’t seem to get as much attention though, is that the downtick in the unemployment rate was due to more people leaving the labor force. This can be seen in the Labor Force Participation Rate (LFPR) which continues to decrease, coming in at its lowest level since September 1981.

There was more confirmation that the housing market continues to improve. CoreLogic reported home prices rising 0.7% from December to January and surging nearly 10% compared to a year ago. The 10% increase was the biggest yearly increase since April 2006 and was the eleventh monthly increase in a row.

What Does all of This Mean for San Diego Home Loan Rates?

The better economic reports recently, has caused investors to shift money from Bonds and into riskier assets like Stocks, to try to take advantage of the gains. As a result, Stocks registered record highs last week, at the expense of Bonds and pushing San Diego mortgage rates higher.

The Fed does continue to purchasing $85 billion in Bonds every month and there is still continued uncertainty out of Europe, meaning some investors will continue their safe haven trade into our Bond Market.  This should help keep a lid on interest rates at least in the short term.

What Could Affect San Diego Mortgage Rates This Week?

The first half of this week is slow, but the second half heats up with several key reports.

  • Economic reports kick off on Wednesday with Retail Sales.
  • Thursday brings Weekly Initial Jobless Claims, as well as the wholesale-measuring Producer Price Index, the first of the week’s inflation reports.
  • We will see more inflation news on Friday with the Consumer Price Index. Plus look for Empire Manufacturing and Consumer Sentiment to conclude the week.

As of Monday March 11th, a client looking to purchase a $400,000 home with 20% down payment could get a 30 year fixed mortgage with an interest rate of 3.625%, 3.699% APR.  This rate is based on a 740 plus credit score. The payment on this mortgage would be $1,459.36.

If you are interested in getting your own quote, please click HERE or feel free to give me a call at 619-312-0612. I am a San Diego Mortgage Banker who works locally and has over 12 years experience. I look forward to helping you secure the best interest rate.

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