Jason Bernabei, TriCastle Realty
DEL MAR, April 16 2012 – Goooooooood Tax Deadline Monday Morning San Diego! Another beautiful day in SD, and a lot to be optimistic about for new homebuyers. If you’re lucky enough to be buying now, you’re looking at doing so at one of the most optimal times in terms of your potential mortgage rate.
DEL MAR, April 16 2012 – Goooooooood Tax Deadline Monday Morning San Diego! Another beautiful day in SD, and a lot to be optimistic about for new homebuyers. If you’re lucky enough to be buying now, you’re looking at doing so at one of the most optimal times in terms of your potential mortgage rate.
After a brief spike north of 4 percent last month, mortgage rates have calmed down, near, quite literally, their lowest levels of all-time. And if that brings to mind the annoying flashing pink flamingo online advertisements popping up in inbox’s all across the nation making the same claim on just about a daily basis for the past decade; know that this time, it’s actually true. According to Freddie Mac's weekly Primary Mortgage Market Survey, for applicants willing to pay 0.7 discount points plus a complete set of closing costs, the average 30-year fixed rate mortgage rate fell 3.88 percent this week. 0.7 discount points adds $700 to your mortgage closing costs for each $100,000 borrowed.
Mortgage rates are down again this week by in large to "safe haven" buying. The rate improvement is initiated by Wall Street's concern that Italy and Spain will have trouble servicing their respective sovereign debt. In response, investors are selling risk-heavy assets and in turn purchasing U.S. government-backed bonds. This creates demand for mortgage bonds which pressures mortgage rates further south.
What is happening now parallels what transpired in Greece late last year. And if Greece and other analogies historically are any indicator, it is prudent to conclude that so long as economic uncertainty is the norm, mortgage rates will likely stay down.
You can contact me, Jason Bernabei, at jasonb@tricastle.com, and check me out each and every Monday on www.therealtyinsiders.com for more, and be sure to tune in to see myself, and local industry experts talking real estate on “The Realty Insiders,” THE ONLY real estate show in town!
Jay’s Outlook: Partly Sunny
Jason Bernabei, TriCastle Realty
