San Diego Mortgage Rates Update 02/05/2010

San Diego Mortgage rates improved a few basis points yesterday due to a large sell off in the stock market. Our European neighbors are suffering through their own economic crisis and this is causing foreign investors to seek refuge in what is still considered the safest bet in the world:  US Treasuries.  As investors sell their stocks to buy bonds this so called “flight to safety” into the bond market helped mortgage-backed securities prices move higher and as MBS prices rise rates fall.

This morning the monthly unemployment report came out. This is the most important piece of economic data released to the market because consumer spending is what drives our economy and market participants track jobs as a way to gauge consumer demand and economic activity.   High unemployment is bad for stocks and good for mortgage rates.  The national unemployment rate came in at 9.7% which was better than expected but the crisis in Europe seems to have overshadowed this positive news leaving San Diego mortgage rates virtually unchanged.

My wholesale lenders issued rate sheets slightly better but mostly unchanged from yesterday afternoon.  The 30 year fixed rate mortgage remains in the 4.75% to 5.00% range for well qualified borrowers.  Well qualified assumes a FICO credit score of 740, a loan to value at 80% and pay all closing costs including one point loan origination.   Check back frequently for news affecting San Diego Mortgage rates!