Mortgage Rates Attractive to Home Buyers

Mortgage rates are continuing to stay flat due to unemployment concerns. 

This week the US Treasury will auction off $81 Billion worth of debt and investors are concerned that demand especially foreign demand will wane due to all the debt that has come into the market over the past few months.  The Chinese Premier in a meeting with Obama this week warned him that national debt and urged Obama to get it under control.”  Whether that means anything or not is anyones guess but it is interesting to see. 

With the holidays coming, rates traditionally rise during this time.  Again, if homebuyers in Saratoga, Los Gatos, Monte Sereno and surrounding Silicon Valley communities are waiting for lower rates, it is our opinion that rates are “as good as they are going to see now and for the foreseeable future.” 

Current rates for Non-conforming, jumbo (>$729,750), 30 year fixed are an attractive 5.75%; Jumbo conforming ($417 K – $729,750) are at 5.25%; and Conforming loans (<$417 K) are at 5.125%.

Rick Bonetti | Alain Pinel Realtors | 408-857-8800

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