Introducing an easy-to-follow inside look at mortgage rate activity, featuring charts, rate sheets, market commentary, and even video recordings all in one daily article! All Real Estate Professionals & Consumers are advised to stay informed about interest rates and learn THE TRUTH BEHIND MORTGAGE QUOTES. Whether you're a newbee, market analyst (or somewhere in between), keep yourself informed of where mortgage interest rates are going (and why).
The Mortgage Street Smarts of where mortgage interest rates are going (and why):
The following information is current as of Monday 6-27-2011 and will help you understand todays best mortgage rates. If you are a Buyer/Borrower who is still on the fence (or if you are a Real Estate Agent attempting to educate your "on the fence" Buyer), please review these trends and secure an historically low interest rate before it is too late.
The market closed Friday with an IMPROVEMENT to pricing (and will typically warrant a pricing adjustment by most Lenders). Friday's IMPROVEMENT resulted in a change of 9 basis points (bps).
The following chart shows the market activity for today (hint: upward activity is good, downward activity is bad):
The following chart shows market activity over the past 10 days (hint: green is good, red is bad):
The following chart shows market activity over the past 1 month:
Daily Interest Rate Snapshot (sample of rates from one of the country's largest Lenders...individual pricing will vary based on specific Borrower qualifications): NOTE: This Lender has quoted a 1.00% Origination Fee (1 Point) to accompany this pricing. It bears noting that this chart does not necessarily represent todays best mortgage rates.
Market Commentary
Analyst #1 (Neil Trenerry):
FNMA 30-Yr 4.0%
Previous close 101.219
Opened Up 0.03bp @ 101.250
Key Economic Data:
EUR / USD 1.4174 Down 0.0015
USD / JPY 80.9430 Up 0.5173
GBP / USD 1.5932 Down 0.0027
Oil 90.24 Down 0.92
Gold 1,498.60 Down 2.30
Key Economic News:
Disappointing
Consumer spending rose less than expected and from a downward-revised base in May, pointing to some downside risk to our second-quarter GDP growth number. Core price inflation picked up in line with expectations.
Key Numbers:
Personal income +0.3% in Jan (mom) vs. median forecast +0.4%.
Personal spending +0.0% in Jan (mom) vs. median forecast +0.1%.
PCE core price index +0.26% in Jan (mom) vs. median forecast +0.2%.
Main Points:
1. Personal spending fell short of expectations, remaining unchanged in nominal terms but falling 0.1% in real terms. Moreover, the level of real spending in April was revised down. Real personal spending in the first quarter is tracking at 1% or just below, compared with the latest Q2 assumption of 1¼%. This implies a bit of downside risk to our 2% GDP growth estimate for the second quarter. Personal income also fell short of consensus expectations in May, rising 0.3% from a downward-revised base. The saving rate increased by one tenth to 5.0%.
2. The price components of this report contained few meaningful surprises. The increase in the core index was a bit above our expectation (+0.26% versus 0.24%). The year-to-year trend accelerated to 1.2%, as expected.
11:00: Minneapolis Fed President Kocherlakota speaks on "Re-Thinking Leverage Subsidies" before the Tri-State Bankers Summit; Big Sky, Montana.
13:00 Kansas City Fed President Hoenig speaks at financial reform project; DC
Advice:
My position on MBS stays neutral
Analyst #2 (Dan Rawitch):
Here is the link to our daily video http://ratewatch.com/ratewatchnow.html
The Dow is up over 100 points on what I would call weak news! Personal spending is at a 20 month low and personal income is flat when adjusted for inflation. So...although we are not making less money, we are spending less. This is a function of fear of job loss AND gas prices cutting into our spendable dollars. In the end, if consumers don't spend, the economy cannot recover. It is simply that simple! Really
I hope to see support at the 101.00 level, which thanks to the DOW we may test today. We NEED to climb above and close above the 101.25, to continue our rally, otherwise we justify days of sideways movement.
Watch the auction later today for clues, the divergence between stocks and bonds could cause a whipsaw effect, depending on the results.
Trusted Industry Resource
The above information was compiled and distributed by San Diego Residential Mortgage Specialist, Jason E Gordon. As a Certified Mortgage Planning Specialist (CMPS) Certified Distressed Property Expert (CDPE) and Certified Mortgage Coach (CMC), Jason E Gordon utilizes his advanced training to examine a prospective Client's complete financial picture, while carefully listening to their overall goals. If it is mutually agreed that a new loan makes sense to pursue, Jason strives to make the entire loan process as seamless as possible. He truly believes that providing open communication and patient educational guidance to his Clients and Business Alliances has been a pivotal component to building his business, while enhancing his reputation in the Mortgage Industry as a Trusted Advisor. Visit www.jasonegordon.com for more information.
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