Mortgage Rate Update 5-10-12: Trends Projections & Todays Lowest Rates

This week has shown some of the smallest net gains and losses in recent memory. Are we one economic report from seeing a definitive direction for mortgage rates? If you, or someone you care about is considering a mortgage, it is recommended that you first read THE TRUTH BEHIND MORTGAGE QUOTES to insure the decisions you make are based on fact and not clever advertising.

The Mortgage Street Smarts of where mortgage interest rates are going (and why):

The following information is current as of Thursday 5-10-2012 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 a WORSENING to pricing (and will typically warrant a pricing adjustment by most Lenders). Wedneday's WORSENING resulted in a change of 3 basis points (bps).

(hint: upward activity is good, downward activity is bad)

The following chart shows the market activity for today:

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: Neil Trenerry

FNMA 30-Year:

3.0 Coupon: Previous Close 101.313  Open 101.172  Change -0.141

3.5 Coupon: Previous Close 104.156  Open 104.078  Change -0.078

4.0 Coupon: Previous Close 106.078  Open 106.000  Change -0.078

Treasuries:

5 Year: Previous Close 100.563  Open 100.461  Change -0.102  Yield 0.780

10 Year: Previous Close 98.918  Open 98.625  Change -0.293  Yield 1.902

30 Year: Previous Close 101.672  Open 100.859  Change -0.813  Yield 3.081

Key Economic Data:

EUR/USD: Previous Close 1.2932  Open 1.2969 Change 0.0035

GBP/USD: Previous Close 1.6129  Open 1.6177 Change 0.0047

USD/JPY: Previous Close 79.650  Open 79.880  Change 0.2300

Gold: Previous Close 1593.70 Open 1592.40 Change -1.30

Oil: Previous Close 96.81 Open 97.43 Change 0.62

 
Key Economic News:

International Trade month-on-month for Mar: Actual -51.83b, Consensus -50.0b, Last -46.0b, Revised -45.42b.

Import prices for Apr: Actual -0.5%, Consensus -0.2%, Last 1.3%, Revised 1.5%.

Export prices for Apr: Actual 0.4%, Consensus 0.2%, Last 0.8%.

Unemployment

Initial jobless claims: Actual 367k, Consensus 369k, Last 365k, Revised 368k.

Jobless claims 4-week average: Actual 379k, Last 383.5k, Revised 384.5k.

Continued jobless claims: Actual 3.229m, Consensus 3.278m, Last 3.276m, Revised 3.29m.

11:00: Federal budget for Apr: Consensus 30.0b, Last -198.1b.

Advice:

With International Trade and Import/Export coming in close to expectations, and unemployment creeping down at a snail’s pace. I would expect the market to hold these levels.

My position on MBS stays neutral.

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.jasongordon.net or www.ApprovingSD.com or more information.

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