What’s Ahead For Pleasanton Home Loan Rates This Week : September 12, 2011

What’s Ahead For Pleasanton Home Loan Rates This Week : September 12, 2011

Eurozone trouble aids mortgage ratesMortgage markets improved last week as a weakening Eurozone and questions about the U.S. economy sparked a global flight-to-quality. Conforming and FHA mortgage rates improved for the second week in a row.

The storylines should sound familiar by now. They are the same ones that have dictated the path of mortgage rates since April 2011. As a result, according to Freddie Mac, mortgage rates across California and nationwide are now at an all-time low.

Mortgage Pricing Benchmark

Not in 50 years of tracking mortgage rates has pricing been so favorable.

Last week’s holiday-shortened week didn’t begin well for rate shoppers in my city of Pleasanton. Rates moved higher on the expectation of additional economic stimulus from two separate parts of the government — the Federal Reserve and Congress.

Wall Street held high hopes for Ben Bernanke’s address to the Economic Club of Minnesota, and for the President’s address to a joint session of Congress. It expected Fed Chief Bernanke to reveal clues about the Fed’s next move; and it expected the President to unleash a massive jobs creation program that would put more Americans to work.

Both outcomes would have harmed mortgage rates as money flowed into stocks. However, neither happened. Bernanke kept mum on the Federal Reserve’s options and the White House announced a jobs program smaller in scope than was expected.

Mortgage rates fell throughout the day Thursday then received a big boost Friday.

The Eurozone

Amid rumors of a pending Greek default and the potential credit downgrades of several Eurozone banking groups, safe haven buying picked up and drove mortgage rates down.

Markets open this week with rates lower than they’ve ever been in history.

There isn’t much new data set for release this week so market expectations will continue to set the direction in which mortgage rates go. If concerns for a Eurozone default rise, mortgage rates should fall. Conversely, if Eurozone chatter settles, mortgage rates should rise.

For now, mortgage rates remain at all-time lows and should not be taken for granted. If you see a rate that makes sense for you, consider locking it in.

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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