San Diego Mortgage Rates Update 01/25/2010

As of last Friday San Diego mortgage rates were at their lowest point of the new year as most lenders were offering 4.75% for a 30 year fixed rate loan.

This week has a number of rate influential data ahead. There is a meeting of the Fed , $118 billion in Treasury auctions, several housing market indicators, and a report on Gross Domestic Product.  All of these reports or events have the potential to move interest rates.

The only report today was Existing Home Sales. This report shows the number of sales closing in the prior month so today’s report covered  sales that closed in December 2009.  December’s sales came in at an annualized rate of 5.45 million units which was down from November’s annualized rate of 6.54 million units. This was the biggest one month drop since 1968. To add insult to injury the supply of homes rose from 6.5 months in November to 7.2 months supply in December and not surprisingly San Diego mortgage rates were a little worse today.

Tomorrow  we’ll see the S&P Case-Shiller Home Price Index that tracks the monthly change in home values across the country.  All eyes will be on this data since many believe that until home prices stabilize and start to increase, it will be very difficult for our economy to sustain growth.   Tomorrow also brings a Consumer Confidence report, a 2 year note auction totaling $44billion, and the beginning of the Fed’s two day meeting.

Wednesday brings more home sales data with the weekly Mortgage Bankers’ Associations Application index and New Home Sales followed by an auction of $42billion in 5 year treasury notes.  At 11:15am  Pacific, the Fed Statement will be released. This statement sets the Federal Fund rate and gives an economic outlook and announces any changes to existing programs such as the MBS buying program.

Thursday brings us Durable Goods Orders, Jobless Claims and $32billion of 7 year notes to be auctioned while Friday is the gross domestic product report (GDP), he initial estimate of fourth quarter growth and a report on consumer sentiment.

My wholesale lenders issued rate sheets  @ 1/8 to 1/4 worse than Friday.   The30 year fixed has risen to the 4.875% to 5.125% range for well qualified borrowers. Well qualified assumes a credit score of 740 or higher, a loan to value at 80% or less and an estimated one point fee.  Check back frequently for news affecting San Diego mortgage rates.