San Diego Mortgage Rates Update: 12/30/2009

San Diego mortgage rates are showing signs of improvement today after a week of rising rates. This is largely due to an above average auction yesterday for 5 year treasury notes which in turn caused mortgage backed securities (MBS) to recoup their earlier losses. Remember if MBS prices fall then mortgage rates rise and conversely when MBS prices are high, mortgage rates are low.

The Treasury successfully auctioned another $32 billion of 7 year notes today.  This is positive for our economy because it shows that despite our massive amounts of  borrowing demand for our debt instruments remains strong. This strong demand keeps San Diego mortgage rates low!!

Many of my wholesale lenders are issuing rate sheets that have improved from yesterday.  The 30 year fixed rate mortgage is in the 4.875% to 5.25% range for well qualified borrowers.  Well qualified assumes a 740 FICO or higher, loan to value at 80% or less and one point loan origination/discount.  Check back frequently for news that affects San Diego mortgage rates.