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Mortgage Rate Update 8-23-11 - Market Projections (should you lock today?)

By
Mortgage and Lending with CMG Mortgage, San Diego, CA NMLS 259027

Todays best mortgage rates. What can we expect from mortgage rates this week? 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).

Mortgage Street Smarts - Daily interest rate updates, daily mortgage rate projections, mortgage quotes, featuring todays best mortgage rates. Provided by San Diego Residential Mortgage Specialist Jason E Gordon, CMPS, Direct Lender, Mortgage Broker, San Diego, CA. Visit www.MortgageStreetSmarts.com for free online mortgage calculator, no hassle mortgage quote, and secure online mortgage loan application.

The Mortgage Street Smarts of where mortgage interest rates are going (and why):

The following information is current as of Tuesday 8-23-2011 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 Monday with a WORSENING to pricing (and will typically warrant a pricing adjustment by most Lenders). Monday's WORSENING resulted in a change of 12 basis points (bps).

California's Best Mortgage Rates - Jason E Gordon - San Diego Residential Mortgage Specialist - www.ApprovingSD.com

The following chart shows the market activity for today (hint: upward activity is good, downward activity is bad):

California's Best Mortgage Rates - Jason E Gordon - San Diego Residential Mortgage Specialist - www.ApprovingSD.com

The following chart shows market activity over the past 10 days (hint: green is good, red is bad):

California's Best Mortgage Rates - Jason E Gordon - San Diego Residential Mortgage Specialist - www.ApprovingSD.com

The following chart shows market activity over the past 1 month:

California's Best Mortgage Rates - Jason E Gordon - San Diego Residential Mortgage Specialist - www.ApprovingSD.com

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.

California's Best Mortgage Rates - Jason E Gordon - San Diego Residential Mortgage Specialist - www.ApprovingSD.com

Market Commentary

Analyst #1 (Neil Trenerry)

FNMA 30-Yr 4.0%

Previous close 103.969

Opened Down 0.06bp @ 103.906

 

Key Economic Data:

UST 5 YR  0.93  Up  0.01

UST 10 YR  2.13  Up  0.02

UST 30 YR  3.46  Up  0.04

 

EUR / USD  1.4457  Up  0.0099
USD / JPY  76.5458  Down  0.2447
GBP / USD  1.6503  Up  0.0051

Oil   85.10   Up  0.68

Gold   1,873.80   Down   18.10



Key Economic News:

 

New home sales and the Richmond Fed index:

 

10:00: New home sales (July): Small gain. New home sales have held in a tight range of about 275k to 325k for more than a year.

Consensus: -0.6%; Last -1.0%.

 

10:00: Richmond Fed survey (August): Another weak survey? Given the sharp decline in the Philadelphia Fed index last week, we will be watching the second-tier regional manufacturing reports with greater scrutiny. In addition to a manufacturing index, the Richmond Fed survey contains a separate set of questions sent to firms in service-providing industries, which is one of the few direct measures of services activity in the monthly indicator cycle.

Consensus: -5; Last -1.

 

 

Advice:

 

Unless there is a big surprise from New home sales or The Richmond Fed. I would expect the market to stay in the 104.00 area.

 

My position on MBS stays neutral (Getting close to going short).


Analyst #2 (Dan Rawitch)

Here is the link to our daily video http://ratewatch.com/ratewatchnow.html

Markets were not quite open when I recorded.  I would watch the current level of 100.75 VERY carefully.  A dip below that causes not only a break in support but a failed head and shoulders formation on the chart.

New home sales will be out shortly, that number is not expected to be good, so it may not help bonds.

Lastly, we have mounting concerns over the Germany and China slowing...this could pressure stocks and help bonds.  Unless of course the market decides to focus on its next dose of crack!

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 or www.ApprovingSD.com or more information.

Click here for daily mortgage interest rate updates and projections for todays best mortgage rates

Comments (2)

Anonymous
Vaibhav
you will buy the first year in full directly from the icaursnne company.Then at settlement, the lender will require that you set up an escrow account. usually 3 months of the icaursnne cost is collect at settlement and used to set up the escrow. Then each month 1/12 of the cost is collect so that when the bill comes due the following year, there is enough money in the escrow account so that lender can pay the 2nd years policy
Aug 18, 2012 04:35 PM
#1
Anonymous
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Aug 20, 2012 09:21 PM
#2