One of the key factors in buying a home is getting a loan and one of the key factors of the loan is the interest rate. I preach (sorry about that) to my clients about the value/benefit of getting a good interest rate.
Now, at this time in history, interest rates are great! At one time interest rates were 10% and 15% so interest rates really are great right now.
But, if you stay on track of the rates you can lock in a rate that will save you thousands over the life of your loan. As little as a half percent can save you hundreds of dollars each month.
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Current mortgage rate trends:
Mortgage rates short term are holding steady this morning and may drop in coming weeks after the S&P downgraded the US debt from stable to negative. After rating junk mortgages from 2002-2007 as AAA it looks like they aren't making the same mistake. This is a signal to politicians that they now need to make decisions best for the US instead of their own political careers.
Remember that mortgage rates usually drop when there is bad economic news and rise when there is good economic news.
Commodity prices (food, fuel etc.) are increasing and show no signs of backing down. This is usually the first sign of inflation. Inflation erodes the buying power of the dollar including overseas so when inflation rears its ugly head the Fed raises rates (not mortgage rates) to keep inflation under control. It is a tough balancing act because raising rates could hurt our economy from growing.
The current mortgage rate trend is enjoying a nice little dip for the moment but do not be fooled, mortgage rates will rise before years end. If you are considering buying or refinancing a home stop considering and get started because mortgage rates and jumbo mortgage rates aren’t going to tumble.
La Jolla's Jumbo loan professionals