There was good economic news last week as retail sales increased 1.1% in February, up from 0.2% in January. This was the biggest gain in the retail sales number in five months, but that good news did not stop San Diego Mortgage Rates from improving slightly at the end of last week and Monday morning. We saw interest rates tick down about .125% as of Monday from the highs of last week.
We were also watching inflation last week to see how it would affect San Diego Mortgage Rates. The Producer Price Index came in as expected, showing inflation at the wholesale level remains tame. The Consumer Price Index rose by 0.7% in February, coming in higher than the 0.5% expected. Inflation though, continues to be within the Fed’s target range.
Uncertainty in Europe, particularly Cyprus, showed up again on Monday causing safe haven buying in the US bond market, which helped San Diego Mortgage Rates improve as mentioned above.
Today, 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 3.50%, 3.589% APR. This rate is based on a 740 plus credit score. The monthly payment on the mortgage would be $1,436.94.
What Could Affect San Diego Mortgage Rates This Week?
The reports for this week do not come until the middle of the week and everyone will be watching the Fed meeting.
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The biggest potential market mover could be The Federal Reserve meeting. It will release its monetary policy statement on Wednesday. The statement will be scrutinized for any hints on the current purchase programs of Mortgage Backed and Treasury Securities. If there is any further talk of stopping the programs this year, it could lead to lower Bond prices and a push higher in San Diego Home Loan Rates.
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 Broker who works locally in San Diego for the past 12 years. I look forward to helping you secure the best San Diego Mortgage Rate possible.