Mortgage interest rates for Orange County, CA borrowers continue to remain low. Earlier this year we saw wild swings with mortgage rates, but the second half of the year has been very stable. Still, it is important to understand the risks of floating a rate while in escrow.
This week will be short but some interesting things are happening. Existing Home Sales were already reported this morning, reporting 6.10M, which is much higher than the expectations of 5.70M. This was good news. Tuesday the GDP, Chain Deflator, and Consumer Confidence index will be released. More imporant will be the release of the FOMC (Federal Open Market Committee) Minutes. The FOMC meets 8 times a year in order to determine the near term direction of monetary policy. The market can sometimes make dramatic moves depending on the interpretation of the policy. Wednesday will also see several reports and indexes released, including Jobless Claims, Personal Spending, and Durable Goods. The two report with the expected highest impact on mortgage rates will be the Personal Consumption Expectations and Core PCE for October and for the year.
Should I Lock or Float?
The answer to this question depends on your ability to deal with risk. For somebidy in escrow to purchase a home, as you get closer to the close date locking the rate will become more important. If rates went up just before the close of escrow, you get stuck with a higher rate. Quite often it makes sense on purchase transactions to lock the rate at the beginning of escrow. For a refinance, the risk is different. There is typically not a specific date that a refinance needs to close by. If rates bounce up, the borrower can hold off a few weeks and wait for rates (to hopefully) come back down. At the moment, as of this writing, Floating is recommended, but that could change later today if there is a shift in the market.
| Mortgage Interest Rates for Fixed Rate Mortgages* | |||||||||||||||||||||||||||||||||
| Rates as of Monday, 23rd November, 2009: | |||||||||||||||||||||||||||||||||
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For the most up to date information on Orange County mortgage rates, please contact Tim Storm directly at the numbers listed below.
Authored by Tim Storm, an Orange County, CA Loan Officer – Please contact me for more information about an Orange County, CA home loan. 877-786-4243 x 7.
Contact us for your Orange County Mortgage:
Call our office today and see how we can help you and your family. Ask for your Free First Time Home Buyer Report.
877.786.4243 x 7 | tstorm (at) ochomebuyerloans.com
* Licensed by Department of Corporations under the California Residential Mortgage Lending Act. PRMI Branch License 813F487.
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