San Diego Mortgage Rates Update: 12/29/2009

San Diego mortgage rates are unchanged after the release of the Case Shiller home price index put out by Standard and Poors. The index data reported today covers national home prices in the month of October and they were virtually unchanged from September. A look at the index from October 2008 shows prices to be down approximately 6-7% nationally however the best performers were western cities like Phoenix, Seattle, San Diego, San Francisco and Los Angeles as these were hardest hit by foreclosures.  San Diego home prices were only down 2.4% from October of last year. The good news is that it couldn’t be a better time for buyers! San Diego mortgage rates are near historical lows, home prices are near the bottom of the cycle and the first time home buyer tax credit is extended into 2010.

In the bond market we’re seeing more of the same. Traders are waiting until after the new year to make decisions. We do have one final bond auction for 2009 tomorrow but can expect little in the way of mortgage backed security (MBS) price volatility. Remember that as MBS prices rise, mortgage rates decline. My lenders have been sending me rate sheet improvement notices this afternoon and the 30 year fixed for well qualified borrowers is now in the 4.875 – 5% range. This assumes a minimum FICO of 740, a loan to value of 80% and 1 point discount/origination.  Check back frequently for news affecting San Diego mortgage rates.