Pleasanton Home Loan Rates- Whats Ahead this week: August 22, 2011

Pleasanton Home Loan Rates- Whats Ahead this week: August 22, 2011

Eurozone concerns aid mortgage ratesMortgage markets improved AGAIN last week, pushing mortgage rates in California to an all-time low; lower than the lows set last November, even.

Last week’s low mortgage rate drivers are primarily European. Joining the debt concerns that have dogged Europe since March, a fresh wave of doubt has surfaced about the health of some Eurozone banks. The fears sparked a new wave of safe haven buying.

“Its a Small World After all”

Global equities were socked last week and the Dow Jones Industrial Average fell for the 4th straight week. For home buyers in Pleasanton, though, the timing may be perfect. As stock markets lose, bond markets gain and when bond markets gain, mortgage rates drop. Remember: Weak economic news normally causes money to flow out of Stocks and into Bonds, helping Bonds and home loan rates improve, while strong economic news normally has the opposite result.

According to government-group Freddie Mac’s weekly mortgage rate survey, the average 30-year fixed rate mortgage fell to 4.17% last week with 0.7 points. This is the lowest rate-and-points combination in history.

The 5-year ARM fell to 3.08 with 0.5 points.

As mortgage rates fall, though, be wary of trying to “time the market”. It’s impossible to know when rates have bottomed and mortgage rates tend to spike without notice. That’s what happened in May 2010. And then again in November 2010. And then a third time in April 2011.

When rates rise, they could tack on 0.500% or more overnight.

The Week Ahead

Loan Squawk

This week, there is a lot that can move mortgage rates. With housing data set for Tuesday release, the Eurozone stories still unfolding, and three Treasury auctions planned, it’s best to be ready for locking.

Have a Plan for your Mortgage

If you’re floating a mortgage rate or still shopping for a home, consider locking your rate as soon as possible. Rates trended higher to close out last week and will be riding that momentum forward. I love to work with readers that find my information on the Mortgage and Housing Market helpful in your decision making process. As a Mortgage Planner at Vintage Mortgage Group in Pleasanton I am in a unique position to help you capitalize at any point in the market. Contact me below today to help you with your purchase or refinance.

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