San Diego Mortgage Rates Report: November 5, 2008

We have a new President and his name is Barack Obama. Is that good for mortgage rates?

I think either man being elected would have been good for mortgage rates provided the victory was decisive.  The Obama victory was clearly decisive and markets should reward that.  In anticipation of this decision, mortgage-backed securities rallied today bringing mortgage rates to the 6% level  I thought we might reach this week.

On Wednesday, conforming mortgage rates should be offered at 6% or below; take any rate under 6% if you're closing in the next 45 days.  While the euphoria of an Obama victory may bring mortgage rates even lower, the risk of a quick reversal still exists.

Mortgage rates under 6% are about as good as it gets.