Special offer

Mortgage Rate Update 11-3-11: Trends, Projections & Today's Best Rates

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

San Diego's best mortgage rates. What can we expect from mortgage rates this month? 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 Thursday 11-3-2011 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 Wednesday with an IMPROVEMENT to pricing (and will typically warrant a pricing adjustment by most Lenders). Wednesday's IMPROVEMENT resulted in a change of 15 basis points (bps).

 today'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):

 today'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):

 today'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:

 today'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.

 today's best mortgage rates, jason e gordon, san diego residential mortgage specialist, www.ApprovingSD.com

Market Commentary

Analyst #1: Neil Trenerry

FNMA 30-Yr 3.5%

Previous close 102.219

Opened Down 0.37 @ 101.844

 

Key Economic Data:

UST 2 YR 0.24  Up  0.01

UST 5 YR  0.93  Up 0.04

UST 10 YR  2.07 Up  0.08

UST 30 YR  3.11  Up  0.10

 

EUR / USD   1.3754  Up  0.0007
USD / JPY  77.9700  Down  0.0800
GBP / USD  1.6015  Up  0.0066

Oil   93.72   Up   1.21

Gold   1,760.30  Up  30.70

Key Economic News:

 

Small decline
Jobless claims decline slightly in latest week; have been broadly steady at about 400k over last month. Unit labor costs decline more than expected in Q3.

Key Numbers:
Initial jobless claims 397k for week of October 29 vs. median forecast 400k.
Continued jobless claims 3,683k for week of October 22 vs. median forecast 3,693k.
Nonfarm productivity +3.1% (qoq ar) for Q3 vs.  median forecast +3.0%.
Nonfarm unit labor costs -2.4% (qoq ar) for Q3 vs. median forecast -1.0%.

Main Points:
1. Initial jobless claims fell to 397k in the week ending October 29. Claims for the prior week were revised up to 406k from 402k. Over the past several weeks claims have looked steady at about 400k. Continuing jobless claims declined by 15k in the latest available week, but the number of persons receiving benefits through the emergency/extended benefit programs increased (for the week prior, not seasonally adjusted). The total number of benefit recipients has been slowly trending down over the past few months. At least part of this is due to benefit expiration.

2. Separately, nonfarm productivity increased by 3.1% (quarter-over-quarter annualized), about as expected. Nonfarm unit labor costs declined by 2.4%, a larger drop than expected. On a year-over-year basis, unit labor costs have increased just 1.2%-a rate consistent with fairly limited wage pressures for firms.

 

8:30: Atlanta Fed President Dennis Lockhart gives welcome remarks at conference.

 

10:00: ISM non-manufacturing index (October): Flat. Other available business surveys point to roughly steady growth in activity.

Consensus: 53.5; Last 53.0.

 

10:00: Factory orders (September): Small decline. The already-released durable goods report suggests that total factory orders declined slightly in September.  Revisions to durable goods shipments and/or news on inventories could imply revisions to Q3 GDP growth.

Consensus: -0.2%; Last -0.2%.

Advice:

 

Our numbers come in as expected, but all eyes will be on Europe until Greece votes.  

 

My position on MBS stays neutral.

 

Analyst #2: Dan Rawitch

 

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

More scary stuff happening in Europe.  Papandreou may very well be forced to resign.  France and Germany have strongly threatened to withhold the 8 billion payment the Greece desperately needs now.  There is also talk of pushing Greece out of the Euro Nation and financial systems.  Ouch!

Meanwhile, at home…FOMC reveals darker concerns in US and Fed reduces GDP target down to 2.5 for next here and concedes that unemployment will remain nearer to 9% throughout the year.

Still…all that said, the Dow is up because the ECB agreed to cut rates by .25.  Seriously Guys?

Whatever…I remain bullish as we stay above 101.50

 

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.

Click here for daily mortgage interest rate updates and projections for San Diego's best mortgage rates