Mortgage rates were stable this week. ARM rates went up and the fixed rate mortgage rates are the same as they were Monday. I mentioned that traders felt "stuck in the middle" of conflicting data. Core inflation is rising but oil prices are falling like a rock off a cliff. I'm as confused as the mortgage bond traders so I'm taking this opportunity to lock rates for loans closing within 30 days.
READ: Why Oil Prices Will Drop BELOW $100/ Barrel in 2009
Why? I think the rising ARM rates suggest that traders believe, in their hearts, that the Fed will tighten before Thanksgiving. I'm more about mitigating risk rather than pouncing on opportunity so when I'm confused, I lock mortgage rates. Maybe the descent in oil prices will continue and mortgage rates decline further but "I ain't seeing it" from my ivory tower.
Mortgage rates in San Diego for August 11, 2008. Loan amounts up to $417,000:
3/1 ARM 5.750%
5/1 ARM 5.750%
7/1 ARM 6.000%
10/1 ARM 6.250%
30 Yr Fixed 6.375%
All rates offered to the borrower with 1 point cost. Rate quotes assume a purchase transaction with a 20% down payment, 720 credit score, and full income qualification. Rates are subject to fluctuation. Custom rate quotes and rate lock advice are available by calling (858)-777-9751.
SAN DIEGO MORTGAGE RATE TREND:
Next 7 days: Neutral
Next 30 days: Neutral
Next 3 months: Neutral
