San Diego Home Mortgage Rates Fall for 4th Week
Mortgage rates fell for the 4th straight week as economic concerns continued affecting global markets.
The 30-year fixed-rate mortgage fell 4 points to 3.94%. The 15-year fixed-rate mortgage fell 2 points to 3.21%.
The average 30-year fixed-rate jumbo mortgage fell 4 points to 3.83%.
The typical 5/1 adjustable-rate mortgage ticked down 1 point to 3.3%.
Mortgage applications jumped 8.8% last week compared with the previous week, according to the Mortgage Bankers Association’s weekly survey.
With the US stock market large downturn in January, investors have been trying to find safe havens to move their capital into. So, typically in large market downturns like this stock investors by more bonds and when they buy more bonds it becomes a simple supply and demand situation which causes the bond interest rates to decline.
So, this rush for safe investment havens usually causes home mortgage rates to also declined. This is a situation we are currently in. Today, both home-buyers and the homeowners who are refinancing should be able to get a better mortgage rate because of the stock market volatility.
From Wikipedia, the free encyclopedia:
A mortgage loan, also referred to as a mortgage, is used by purchasers of real property to raise funds to buy real estate; or by existing property owners to raise funds for any purpose while putting a lien on the property being mortgaged. The loan is “secured” on the borrower’s property. This means that a legal mechanism is put in place which allows the lender to take possession and sell the secured property (“foreclosure” or “repossession”) to pay off the loan in the event that the borrower defaults on the loan or otherwise fails to abide by its terms. The word mortgage is derived from a “Law French” term used by English lawyers in the Middle Ages meaning “death pledge”, and refers to the pledge ending (dying) when either the obligation is fulfilled or the property is taken through foreclosure. Mortgage can also be described as “a borrower giving consideration in the form of a collateral for a benefit (loan).
