All eyes last week were on the government and how the shutdown and debt ceiling issues would be resolved. The good news is that a “deal” was agreed upon before the October 17 deadline, as the government voted to fund itself through January 15, 2014 and extend the debt ceiling limit through February 7, 2014.
Although, the deal was not long term and did not solve any real issues, the news helped both Stocks and Bonds improve late last week. This intern, allowed Mortgage Rates in San Diego to continue their recent pull back from the highs of the year.
Now that the government shutdown is over, many economic reports that were not released will be released in the coming weeks. This will include the Consumer Price Index, Producer Price Index, and Retail Sales. In addition, the Labor Department announced that it will release the September Jobs Report on October 22 and it will delay the October Jobs Report by one week to November 8.
How does this affect Mortgage Rates?
The Federal Reserve has been purchasing $85 billion in Mortgage Bonds and Treasuries each month to try to stimulate the economy. Due to the fact that important economic reports were delayed, there is not much chance the Fed will taper its purchases in the near future.
Tapering will likely begin either late this year or in early 2014. This could help keep San Diego Interest Rates attractive in the near future.
Now remains a great time to consider a home purchase or refinance as rates for home loans still are attractive compared to historical levels. If you are interested in getting a San Diego Interest Rate quote, please click HERE or feel free to give me a call at 619-312-0612.
The rates on Jumbo Loans in San Diego are competitive right now; in fact in some cases the rates on jumbo loans are the same as conventional loans. I am closing a transaction right now on a purchase of a $1.4 million dollar home. The loan amount is $965,000 and on a 30 year fixed the rate is 4.125% with 1 Point. The APR is 4.245% and the mortgage payment is $4,676.
What Could Affect Mortgage Rates This Week?
This week we will get reports on housing and consumer sentiment, and September’s Jobs numbers will finally be reported.
- Two housing reports will come this week, beginning with Existing Home Sales on Monday and then New Home Sales on Thursday.
- With the government shutdown over, September’s Non-farm Payrolls and the Unemployment Rate will be reported on Tuesday, and they will be closely dissected by both Wall Street and the Federal Reserve.
- Weekly Initial Jobless Claims will be reported on Thursday. Claims are still in the 350,000 range as the job sector trudges along.
- Durable Goods Orders, which are orders for items lasting an extended period of time, and Consumer Sentiment will be reported on Friday.
Remember, that weak economic news normally causes money to flow out of Stocks and into Bonds, helping Bonds and San Diego home loan rates to improve, while strong economic news normally has the opposite result.
I am a San Diego Mortgage Banker and Broker who specializes in closing loans on time with great customer service and I look forward to helping you secure the best San Diego Mortgage possible.