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Mortgage Rate Update 11-22-11: Trends, Projections & Today's Best Rates

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

What are California's best mortgage rates? What can we expect from mortgage rates for the remainder of 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 Tuesday 11-22-2011 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 12 basis points (bps).

Today's Best Interest 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):

Today's Best Interest 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):

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

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

Today's Best Interest 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.

Today's Best Interest 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 101.844

Opened Up 0.09 @ 101.938

 

 

Key Economic Data:

UST 2 YR 0.27  Up  0.00

UST 5 YR  0.90  Down 0.01

UST 10 YR  1.96 Down  0.01

UST 30 YR  2.94  Down  0.01

 

EUR / USD   1.3514  Up  0.0025
USD / JPY  77.0400  Up  0.1500
GBP / USD  1.5619  Down  0.0023

Oil   97.61   Up   0.69

Gold   1,693.80  Up   15.20

 


Key Economic News:

 

Downward Revision Due to Inventories

Q3 real GDP growth revised down on inventories.

Key Numbers:
GDP +2.0% (qoq, annualized) in Q3, vs. median forecast +2.5%.

Main Points:
1. Q3 real GDP growth was revised down to 2.0% (quarter-over-quarter, annualized) in the second estimate, down from 2.5% in the advance report. The revision mainly reflected a reduction in the contribution from inventories from -1.1 percentage point (pp) to -1.6pp. Final sales growth-real GDP excluding the effects of inventories-was unchanged at 3.6%.

2. Revisions to the other components broadly offset each other: growth in consumer spending and business fixed investment was revised down slightly (by 0.1pp to 2.3% and 1.4pp to 12.3%, respectively), while import growth was also revised down from 1.9% to 0.5%.

10:00: Richmond Fed survey (November): Improving? Regional manufacturing surveys released for November so far—the Philadelphia Fed index and the Empire State index—showed mixed results, but in general look consistent with low positive growth in the sector.

Consensus: -2; Last -6.

 

13:00: Minneapolis Fed President Narayana Kocherlakota gives speech titled “Looking Back at Three Years of Federal Reserve Action.”

 

14:00: FOMC minutes (November 1-2 meeting): Communication options. Minutes from the 1-2 November FOMC meeting will likely include a detailed discussion of possible changes in Fed communication. We expect that Fed officials discussed nominal GDP targeting, inflation targeting, policy rules such as the one advocated by President Evans, and the prospect of publishing a forecasted path for the federal funds rate. Of these options, we think the committee is most likely to implement a funds rate forecast. The minutes may also mention the prospect of additional asset purchases, which have been discussed recently by New York Fed President Dudley and other Fed officials.

 

 

Advice:

 

With today’s numbers on GDP and Europe still having problems. I believe the market will continue to slowly improve.

 

My position on MBS stays neutral.

 

Analyst #2: Dan Rawitch

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

Uh oh, said the caboose, as trains breaks began squealing.  Why are we slowing down here?  We are miles from the station.    GDP from 2.5% down to 2% is moving in the wrong direction.  We cannot get out of this mess and we cannot create jobs based on these numbers.

Add to that, Europe doing darn near nothing (much like the “Super Committee) and you begin to understand why the DOW just hit negative for the year.  I fear more pain in any risk trades this year and it looks bonds could break out on the upside once again.

We will know more after what we hear what the FED has to say, later today, in the FOMC minutes.

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

Comments (1)

Steve, Joel & Steve A. Chain
Chain Real Estate Investments & Mortgage, Steve & Joel Chain - Cottonwood, CA

Jason,

I believe your forecasted "slow improvement" is good for both buyers and sellers. I just don't know how long it will remain slow. I also agree with your wise advice to buyers regarding the present opportunities. Recovering areas like North Dakota and industries like Aviation and Oil are already seeing rapid price run ups.

Have a great holiday!

Steve

Nov 22, 2011 04:29 AM