San Diego mortgage rates look to trend up in the next week or so. Ambiguity about the spending/stimulus bill, combined with a massive borrowing effort by the Government, is making it difficult for mortgage rates to stay below 5%. Economic data are still bleak and that should act as a ceiling for mortgage rates in the near-term.
If you’re buying a home, with a conventional loan, you should be able to lock-in 4.875% this morning. I’d take that rate if you plan to close in February. I, like Bill Gross of PIMCO, still think we’ll see mortgage rates at 4.5% again; we might have to go through 5.375% to get there, though.
If you have the time and will, hold out for a better rate. Otherwise, all February closings are best served by locking today.
