Mortgage rates are inching higher, a move that could signal a renewed confidence in the economy and a resurgence in investment banking that could affect the availability of San Diego foreclosures. During the first week of February, the all inclusive Fixed Rate mortgage indicator, an average of all conforming 30 year fixed, expanded conforming 15 year fixed and jumbo fixed rates, rose by .08%, to 5.94%. The 5/1 Hybrid ARM rose .06%, ending the week at 5.67%, while the actual rate for standard 30 year conforming loans climbed .09%. Jumbos are actually on the decline, down to 6.83%, and could be a reaction to declining home values that reduces the need for the large dollar mortgages.
Treasury Notes Climbing
Mortgage rates are determined by a mixture of the prime rate, which is the rate banks charge each other for funds, as well as the rate charged for 10 year Treasury notes. With Treasury notes hitting the 3% mark, their highest in three months, mortgage rates are following their standard pattern and climbing as well. Whereas previous economic cycles have closely tied the 10 year Treasury note to mortgage rates, the current situation has been less predictable however, up until now. With the recent increase in fixed rate mortgages, the credit markets are starting to resemble previous patterns of rise and fall, calming the nerves of uneasy investors and helping to stabilize the overall economic markets.
Market stability is beginning to show up in other areas as well. Buyers are getting the message that record low home prices might not be around forever, and the December home sales figures were 6.5% higher than November, and pending home sales were up 6.3%. All market indicators point to higher sales in January as well, so be sure and check back soon to read about their impact on the San Diego real estate market once those numbers are released.
Higher Interest Rate Affect San Diego Foreclosures
As interest rates climb, however, the San Diego foreclosures market could tighten. Higher interest rates means the cost of borrowing money rises as well, and buyers looking for the perfect San Diego bank home need to consider their financing options carefully. Acting quickly to lock in your loan approval for the San Diego foreclosure of your dreams is another strategy that will have you enjoying the benefits of buying one of the many San Diego bank homes currently on the market without overextending your mortgage commitments. Contact Richard Elias today at 1-800-474-1919 for a personal showing of the best San Diego foreclosures and consultation about mortgage options currently available.
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About this Page: The mortgage outlook continues to dominate the San Diego foreclosures market. Richard Elias provides the current rates to help you choose the right mortgage option for you.
Mortgage Rates Continue to Climb
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