Todays best mortgage rates. What can we expect from mortgage rates this quarter? 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 10-17-2011 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 a WORSENING to pricing (and will typically warrant a pricing adjustment by most Lenders). Friday's WORSENING resulted in a change of 22 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 3.5%
Previous close 100.688
Opened Up 0.125 @ 100.813
Key Economic Data:
UST 2 YR 0.27 Up 0.00
UST 5 YR 1.08 Down 0.04
UST 10 YR 2.19 Down 0.06
UST 30 YR 3.19 Down 0.05
EUR / USD 1.3774 Down 0.0108
USD / JPY 76.8700 Down 0.3500
GBP / USD 1.5781 Down 0.0039
Oil 86.00 Down 0.80
Gold 1,682.70 Down 0.30
Key Economic News:
Pessimistic Sentiment Belies Modest Firm-Level Improvement
NY Fed mfg survey better than it looks on surface -- revealing stabilization in orders and modest improvement in shipments and employment, despite respondents' glum characterization of overall business conditions. Industrial production rises in line with expectations in September.
Key Numbers:
Empire manufacturing index -8.48 in Oct vs consensus -4.0.
Industrial production +0.2% in October vs consensus +0.2%
Capacity utilization 77.4% in October vs consensus 77.5%
Main Points:
1. The headline Empire manufacturing index from the New York Federal Reserve posted a -8.5 reading in October, essentially no improvement from the -8.8 recorded last month. This index reflects respondents' answers to the question "What is your evaluation of the level of general business activity?", showing generally downbeat views of the current economic situation.
2. However, when asked about activity at their own business facilities, responses were considerably more encouraging. The new orders index stabilized at +0.2, from -8.0 in September (this is the first positive reading since May). The shipments and employment indexes flipped from negative to positive territory (a 17-point swing in the case of the shipments index).
3. Indicators of price pressures eased, with the "prices paid" index at its lowest level since autumn 2010 and the the "prices received" indexes also showing a bit less inflation.
4. Industrial production rose a modest 0.2% in September, in line with expectations. The composition of the report was more encouraging -- with manufacturing output up 0.4% and mining output up 0.8%, while the more volatile utilities sector (affected greatly by weather conditions) showed a 1.8% decline. Less encouraging was a downward revision to August production to flat (from +0.2% previously.
5. Industrial capacity utilization rose to 77.4% in September, still slightly below its long-term average.
Advice:
My position on MBS stays Long.
Analyst #2: Dan Rawitch
Here is the link to our daily video: http://ratewatch.com/ratewatchnow.html
The DOW looks overbought after an 11% run up of the S&P over just the last 2 weeks. Germany Finance Minister spooked the overnight markets with comments about not being close to a Greek resolution.
This caused a nice bump in treasuries and MBS. I would love to see us climb away from and close well above the 101 mark. We are still too close to falling off the cliff that occurs at 100.50.
Huge news week, many of these items can move the market, but pay careful attention to CPI!
Trusted Industry Advisor
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.
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