Mortgage Rate Update 5-11-12: Trends Projections & Todays Lowest Rates

Strong finish for rates yesterday after a fairly lethargic start. If you are a Real Estate Agent attempting to guide your Buyer to an ethical Loan Officer, please feel free to reference the data in this free daily report. It is also imperative that every Borrower learn about THE TRUTH BEHIND MORTGAGE QUOTES before commiting to work with any mortgage company.

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

The following information is current as of Friday 5-11-2012 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 Thursday with an IMPROVEMENT to pricing (and will typically warrant a pricing adjustment by most Lenders). Thursday's IMPROVEMENT resulted in a change of 12 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 101.156  Open 101.313  Change 0.156

3.5 Coupon: Previous Close 103.891  Open 104.047  Change 0.156

4.0 Coupon: Previous Close 105.797  Open 105.859  Change 0.063

Treasuries:

5 Year: Previous Close 100.492  Open 100.625  Change 0.141  Yield 0.745

10 Year: Previous Close 98.781  Open 99.172  Change 0.391  Yield 1.841

30 Year: Previous Close 99.805  Open 99.688  Change -0.117  Yield 3.016

Key Economic Data:

EUR/USD: Previous Close 1.2930  Open 1.2925 Change -0.0005

GBP/USD: Previous Close 1.6129  Open 1.6067 Change -0.0062

USD/JPY: Previous Close 79.860  Open 79.880  Change 0.0200

Gold: Previous Close 1595.10 Open 1586.10 Change -9.00

Oil: Previous Close 97.08 Open 96.08 Change -1.00

Key Economic News:

Producer Price Index for Apr

Prices month-on-month: Actual -0.2%, Consensus 0.0%, Last 0.0%.

Core prices month-on-month: Actual 0.2%, Consensus 0.2%, Last 0.3%.

Core prices year-on-year: Actual 2.7%, Consensus 2.8%, Last 2.9%.

Inflation year-on-year: Actual 1.9%, Consensus 2.1%, Last 2.8%.

6:55: Univ of Michigan for May:

Sentiment: Consensus 76.2, Last 76.4

Conditions: Consensus 83.0, Last 82.9.

7:30: ECRI weekly index: Last 124.7.

Advice:

With PPI coming in better expected and a Friday might put pressure on MBS pricing. Also keep an eye on Greece for any changes.

My position on MBS stays neutral (Considering going short).

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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