Happy Pi Day ! The mortgage bond market closed today about where it did two weeks ago (our last report). Back then, we advised you to hold out and, if you did, you could have locked at a lower rate on the first few days of March. Mortgage bonds dropped after that, as much as a point. We cautioned our borrowers to not panic and wait patiently for the right rates; we think those rates are here now.
You can follow the national average mortgage rates at Bankrate.com. San Diego mortgage rates tend to be .125% LOWER than the national average. Average rates as of March 14, 2014:
30 Year fixed conventional average= 4.28%
15 Year fixed conventional average= 3.35%
30 year fixed VA/FHA average= 3.87%
30 year fixed VA/FHA jumbo avg.= 4.18%
5/1 adjustable rate conv. average= 3.33%
Geopolitical risk, surrounding the Ukraine and Russia are driving the mortgage bond market (and thereby mortgage rates) instead of economic data. It's possible that weak economic data could drive rates lower but we think that rates are about as good as they get for awhile. We are changing our recommendation from cautiously floating to locking in rates at application.
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