San Diego Mortgage Rates Update 01/19/2010

San Diego Mortgage rates have been holding in a sideways pattern to start off  this shortened week and didn’t react much to the NAHB/Wells Fargo Housing Market Index which showed a three point decline in the West echoing continued concerns about the poor job market and large number of foreclosed homes for sale.  This builder survey rates traffic of prospective home buyers, current sales and expectations of future sales and scores for each component are then used to calculate the index.  Any number over 50 indicates that more builders view sales conditions as good than poor. In January the West region index fell to 16, three points lower than December of 09 but up from a score of 5 in January of 09.

National Association of Home Builders Chief Economist David Crowe had this to say:

“Home buying conditions have rarely been as good as they are right now, but consumers are still waiting to see significant positive signs of improvement in employment and confidence, and this is slowing buyers’ return to the market” …  “Meanwhile, competition from foreclosed homes is also severely impacting new-home sales. That said, expected improvement in the job market this spring will help propel the housing recovery as we head into the prime home buying season.”

For the week ahead,  tomorrow  data picks up with the weekly Mortgage Bankers Associations Application Index followed by Housing Starts which will give market participants a look into the strength of the housing sector.   We also get a reading on inflation with the Producer Price index which tends to be a big mover of San Diego mortgage rates. Thursday brings us the weekly jobless claims and on Friday we have no economic reports.

My wholesale lenders issued rate sheets that were unchanged from Friday. The 30 fixed rate mortgage remains in  the 4.875% to 5.125% range for well qualified borrowers.  Check back frequently for news that affects San Diego mortgage rates!