Mortgage Rates update for San Jose and rest of California. The week that was: A bad one for the rate markets. Mortgage rates increased 12 basis points while the 10 yr note jumped 16 basis points. The chart below would tell you how volatile the mortgage rates were on Thursday and Friday.

  • After weeks of being contained in a narrow choppy range the rate markets broke out to the upside in terms of yield. After nine months of very strong demand for US debt, investors are not as willing to buy unless US interest rates increase to match the increasing deficits being generated in this administration’s spending binges.
  • As for higher rates; we are not expecting rates to move substantially higher from present levels this year, likely the 10 yr note will move up to 4.25% and mortgage rates increase another 50 basis points from current levels.

The week that will be:

  • It is all about the March employment data on Friday. Consumer confidence index on Tuesday and the Mar ISM manufacturing index on Thursday.
  • The March employment picture will change dramatically with a large increase in jobs, estimates are about 200K new jobs. How markets will take it will be key!
  • The debt markets will continue to monitor the developments in Europe with Greece, Portugal, Spain and Italy struggling to keep defaults from actually developing; sovereign debt failures would infect most bond markets including the US.

This week expect continued volatility in the interest rate markets, so it may be a good idea to lock your rates. I subscribe to live bond market movements and tweet about it. If you would like to be updated about live mortgage rates follow me on Twitter or get our Live Mortgage Rate Quote.