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 Tuesday 10-18-2011 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 an IMPROVEMENT to pricing (and will typically warrant a pricing adjustment by most Lenders). Monday's IMPROVEMENT resulted in a change of 40 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 101.219
Opened Flat @ 101.219
Key Economic Data:
UST 2 YR 0.28 Up 0.01
UST 5 YR 1.05 Down 0.01
UST 10 YR 2.14 Down 0.01
UST 30 YR 3.12 Up 0.01
EUR / USD 1.3707 Down 0.0030
USD / JPY 76.7700 Down 0.0600
GBP / USD 1.5717 Down 0.0027
Oil 86.73 Up 0.35
Gold 1,647.30 Down 29.30
Key Economic News:
Large Increase
Producer price increase more than expected on large gain in energy.
Numbers:
PPI +0.8% (mom) for September vs. median forecast +0.2%.
Core PPI +0.2% (mom) for September vs. median forecast +0.1%.
Main Points:
1. The September Producer Price Index (PPI) rose by 0.8% (month-over-month), more than generally expected. The gain was led by a 2.3% increase in the energy index. The larger-than-expected rise in the headline PPI suggests upside risks to the headline CPI for September, reported tomorrow. The core PPI rose by 0.2%, slightly more than consensus forecasts. The main components of the core were mixed: light truck prices rose by 1.6% but car prices fell 0.5%; women's apparel prices declined by 0.4%. Pipeline inflation measures were generally firm: the core intermediate PPI rose by 0.2%, and the core crude PPI increased by 1.0% during the month.
9:00: TICS net inflows (August). Foreign inflows into long-term US securities have cooled this year. Reduced net purchases of Treasuries accounted for most of the slowing, though agencies and corporate bonds also saw lower net inflows. This month we will be watching for any impact of heightened market volatility on cross border investment flows.
Consensus: -$20bn; Last +$9.5bn.
10:00: Housing Market Index (October): Likely still low. This index remains in the mid teens, where it has been for most of the past three years.
Consensus: 15; Last 14.
13:15: Federal Reserve Chairman Ben Bernanke on “The Effects of the Great Recession on Central Bank Doctrine and Practice”. No Q&A.
18:30: Atlanta Fed President Dennis Lockhart on the economy.
Advice:
I would expect the market to continue to improve with a strong dollar this morning.
My position on MBS stays Long.
Analyst #2: Dan Rawitch
Here is the link to our daily video: http://ratewatch.com/ratewatchnow.html
I guess the DOW was overbought, as I suggested yesterday. It gave back over 250 points and today is off to a tough start, thanks to IBM, Bank of America and Goldman losses. The Goldman Sacs loss was only the second one in the history of the company! My concern is that Bonds to did not do that great, considering how bad things were for the equity markets.
To me, this suggests that Stocks have baked a EURO solution into the equation, but bonds have not. What this means is that when they do TRULY find a solution, bonds could tank.
Meanwhile, today we will benefit slightly from the DOW but with caution until we gander at CPI tomorrow.
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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