Mortgage rates are influenced by Mortgage Backed Securities (MBS), and the securities can be influenced by a variety of factors, including stock market volatility and major financial news.
From late 2008 to early 2010, mortgage rates have generally been around 4% – 5%. This has mainly been a result of swift action by the federal government to encourage Americans to buy homes.
As of April 2010, many financial experts are predicting interest rates on mortgages to increase in San Diego, as well as many other cities.
The experts are recommending those in the market for a mortgage to act sooner rather later. By 2012, home prices and interest rates could see at least 10% increases.