Bay Area Mortgage Rates Race Return To April 2010 Levels- Time to Lock

Mortgage rates (Feb 2010 - Feb 2011)

California mortgage rates are surging.

Over the last 7 days, conventional, 30-year fixed rate mortgage rates have jumped 24 basis points, or 0.24%, according to Freddie Mac’s weekly Primary Mortgage Market Survey.

It’s the largest 1-week spike in mortgage rates in recent history.

The 30-year fixed rate mortgage now averages 5.05% nationally. This is much, much higher than what we saw last November when mortgage rates were 4.17% and looked headed to the 3s.

That’s not the case today. In fact, it’s the opposite.

Mortgage rates have risen quickly and fiercely this year. As of this morning, mortgage rates are higher over 9 consecutive days, marking the longest mortgage rate losing streak in the last 6 years, at least.

Note, however, that when you call your loan officer or bank, you may not be quoted the same 5.05% rate as shown by Freddie Mac. This is because Freddie Mac-reported rates are national averages. Any given mortgage rate may be higher or lower depending on its region.

As an illustration, look how this week’s rates breaks down by geography:

  • Northeast : 5.07 with 0.7 points
  • Southeast : 4.99 with 0.9 points
  • North Central : 5.09 with 0.6 points
  • Southeast : 5.06 with 0.6 points
  • West : 5.02 with 0.8 points

In other words, the rate-and-fee combination you’d be offered in the Bay Area is different from what you’d be offered if you lived somewhere else. In the Southeast, rates tend to be low and fees tend to be high; in the North Central U.S., it’s the opposite.

Time to lock your Mortgage Rate

The good news is that, as a mortgage applicant, you can have your pricing whichever way you prefer. Have it your way right away. If getting the absolute lowest mortgage rate is what’s most important to you, have your loan officer structure your loan as in the “Southeast Style”. Or, if you prefer to have as few closing costs as possible and don’t mind slightly higher rates, ask for that type of set-up instead.

Either way, consider locking your rate as soon as possible. If rates keep rising, it won’t be long before they touch 6 percent. If you are in contract or shopping for a home loan contact us below. Were here to help guide you in the best mortgage rate and mortgage product to meet your needs.

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