San Diego Mortgage Rates Update 01/05/2010

To better understand where San Diego mortgage rates are headed we have to look at various factors in the economy. Pending home sales is one of those key factors and the data released today by the National Association of Realtors which covers pending sales in November 2009 reported a national average decline of 16% when compared to October 2009. The silver lining for those of us in San Diego is that regionally the West was only down 2.7% from October to November of 2009 and pending sales were 21.4% higher than November of 2008.

Seasonally this time of year is slow but we can expect an increase in activity in early spring as people rush to take advantage of the expanded home buyer tax credit. This tax credit has been key in keeping San Diego mortgage rates low.  In order to take advantage of the home buyer tax credit you have to be under contract by 04/30/2010 and close by 06/30/2010, be either a first time home buyer or a repeat buyer who owned their previous residence for at least 5 years. First timers get a credit of up to $8000 and repeat buyers get a credit of up to $6500.  One thing to note is that repeat buyers do not have to sell their current residence so long as they plan to occupy the newly acquired property as their primary residence.

Many of my wholesale lenders have issued rate sheet price improvements today. The 30 year fixed is back down to the 4.875% -  5.125% range for well qualified borrowers.  Well qualified assumes a credit score of 740 or higher, loan to value at 80% or less and 1% loan origination fee.  Check back frequently for news affecting San Diego Mortgage rates.