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Mortgage Rate Update 11-4-11: 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 Friday 11-4-2011 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 Thursday with a WORSENING to pricing (and will typically warrant a pricing adjustment by most Lenders). Thursday's WORSENING resulted in a change of 6 basis points (bps).

todays best mortgage rates, san diego residential mortgage specialist, jason e gordon, www.ApprovingSD.com

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

todays best mortgage rates, san diego residential mortgage specialist, jason e gordon, www.ApprovingSD.com

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

todays best mortgage rates, san diego residential mortgage specialist, jason e gordon, www.ApprovingSD.com

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

todays best mortgage rates, san diego residential mortgage specialist, jason e gordon, 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.

todays best mortgage rates, san diego residential mortgage specialist, jason e gordon, www.ApprovingSD.com

Market Commentary

Analyst #1: Neil Trenerry

 

FNMA 30-Yr 3.5%

Previous close 101.781

Opened Up 0.06 @ 101.844

Key Economic Data:

UST 2 YR 0.23  Down  0.01

UST 5 YR  0.91  Down 0.02

UST 10 YR  2.07 Up  0.00

UST 30 YR  3.14  Up  0.02

EUR / USD   1.3768  Down  0.0055
USD / JPY  78.1400  Up  0.0800
GBP / USD  1.6004  Down  0.0037

Oil   93.98   Down   0.09

Gold   1,759.40  Down  5.70

Key Economic News:

Better Than Expected Overall
Overall a modestly better than expected report. Upward revisions to payrolls in earlier months offset small miss for October. Household survey shows drop in unemployment rate and another large increase in employment.

Key Numbers:
Nonfarm payrolls +80k for October vs. median forecast +95k.
Unemployment rate 9.0% for October vs. median forecast 9.1%.
Average hourly earnings 0.2% (mom) for October vs. median forecast +0.2%.
Average workweek 34.3 for October vs. median forecast 34.3.

Main Points:
1. Nonfarm payroll employment increased by 80k in October, slightly below consensus expectations. However, job growth in the previous two months was revised up by a net 102k. With revisions, the payroll statistics were arguably a bit better than the consensus expectation. Goods-producing jobs declined by 10k, reflecting a contraction in construction employment. Private service-providing employment increased by 114k, down from +162k in September (the deceleration partly reflects the fading impact of one-time factors). Government payrolls fell by 24k as state of local governments continued to trim jobs. The average workweek was flat at 34.3 hours, and average hourly earnings increased by 0.2% (mom).

2. The household survey was also better than expected. The unemployment rate fell by one tenth to 9.0%, reflecting a 277k increase in the household survey's measure of employment. The labor force participation rate was unchanged at 64.2% during the month. Broader measures of labor underutilization also improved: the U6 measure, for instance, fell to 16.2% from 16.5% previously.

13:00: Federal Reserve Governor Daniel Tarullo on “The International Agenda for Financial Regulation”.

16:05: San Francisco Fed President John Williams speaks on a panel about jobs, the economy and global competitiveness.

 

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 Headline Unemployment number dipped slightly to 9.0, but the number I care about was a bit concerning.   The rise in Non-Farm payrolls was only 90k jobs, if that sounds like a lot of new jobs across this fine country, keep in mind we humans are breeding at a rate of 175k.  We need more jobs to keep up with our baby making activities!

Greece has taken the Referendumb completely off the table…We still do not have a sustainable or believable situation over there, though.

This should keep the market sideways are a while.

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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