The one- to two-week window of lower mortgage rate cost levels has closed, at least for now. On Friday, March 8, mortgage rates jumped by about a point in cost. The 10-year Treasury yield, which tracks the 30-year fixed mortgage rate, rose from 1.86% last Monday (3/4) to 2.06% on Friday (3/8). Remember, higher yields correlates to higher mortgage rates. To understand when (and why) mortgage rates move, read HERE.
So, what happened? The stock market is busy setting records. The Dow Jones Industrial Average set a record-high closing at each of the past three trading days, moving above 14,400. On Friday, the market was bolstered by an employment report that was better than expected. In February, the unemployment rate dropped to 7.7% and saw payrolls add 236,000 employees. This activity has helped to convince investors to jump on the stock train, moving from the safety of fixed-yield U.S Treasury bonds and into riskier equities.
We took an in-depth look at the rate movement in our Friday post “Positive Jobs Report, Record Stock Levels Influence Mortgage Rate Spike.” To begin the week, mortgage rates largely remained at spiked levels, although the 15-year fixed did drop a bit. We have the 30-year fixed at 3.375% (3.487% APR) and the 15-year fixed at 2.500% (2.751% APR). For the complete rate update, click HERE.
We have published our early-2013 real estate market overview of San Luis Obispo County. As local realtors know, the dominant storyline from the beginning of the year involves “low supply” and “high demand.” Prices are moving higher as multiple bids come in on properties.