San Diego Mortgage Rates For The Week Ending May 14th
San Diego CA - Even though investors were still prone to re-price at the drop of a hat this week, overall volatility was far less than in recent weeks. From MBSQuoteline: "Shifting investor expectations about the timing of Fed tightening worked in favor of mortgage rates this week. The economic data released this week had little impact. As a result, mortgage rates ended the week a little lower.
The Fed has used two primary approaches to stimulate the economy and to help push mortgage rates to historically low levels. Everyone has focused a lot of attention lately on the Fed's bond purchase program, which the Fed is expected to begin to scale back before too long. This program was initiated to provide additional stimulus after the Fed had cut the fed funds rate to near zero and could go no lower.
Until recently, investors expected that the Fed's first hike in the fed funds rate would not take place until mid-2015. A shift forward in expectations for the first Fed rate hike has been one of the forces moving mortgage rates higher.
An article written on Thursday from a noted Fed watcher addressed the question of when the Fed will raise the fed funds rate. The article suggested that Fed officials do not agree with investors that economic conditions have pulled forward the likely timing of Fed rate hikes. Rather, Fed officials still expect that the first rate hike will take place long after the end of the QE program. This article caused mortgage rates to move lower at the end of the week."
Even with the slight improvement this week, potential homebuyers shopping for a mortgage will find that the low 3's are long gone. However, rates are still incredibly low. We have just been spoiled for many years!
Looking to purchase or refinance in California? Contact Kevin Kueneke with The Lending Company by calling 760-500-1919 or click HERE to Apply Now.