Ouch, what a tough week for mortgage rates! As the charts below display, there are a ton of "red candlesticks" over the past week which indicate that mortgage rates have been on the rise. Have we officially bottomed out, or will we see another drop?
So if interest rates have bottomed out, and purchase prices are beginning to creep up, a legitimate argument can be made that now is the time to make your next home purchase!
If you or someone you care about is considering a mortgage, please feel free to share this daily mortgage rate market update with them. You can access a chronological database of these reports at www.JasonGordon.info whenever desired. Also, make sure to learn about THE TRUTH BEHIND MORTGAGE QUOTES to better understand the relationship between up-front closing costs and mortgage interest rates.
The Mortgage Street Smarts of where mortgage interest rates are going (and why):
The following information is current as of Friday 8-17-2012 and will help you understand today's 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 37 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: Neil Trenerry
FNMA 30-Year:
3.0 Coupon: Open 102.047 Change 0.109
3.5 Coupon: Open 104.594 Change 0.078
4.0 Coupon: Open 106.203 Change 0.016
Treasuries:
5 Year: Open 98.539 Change 0.078 Yield 0.802
10 Year: Open 98.203 Change 0.141 Yield 1.823
30 Year: Open 96.219 Change 0.344 Yield 2.941
Key Economic Data:
EUR/USD: Open 1.2354 Change -0.0007
GBP/USD: Open 1.5731 Change -0.0016
USD/JPY: Open 79.310 Change 0.090
Oil: Open 95.64 Change 0.03
Key Economic News:
6:55: Univ of Mich sentiment for Aug: Consensus 72.4, Last 72.3.
7:00: Leading index chg for Jul: Consensus 0.2%, Last -0.3%.
7:30: ECRI weekly index: Last 122.5.
Advice:
Treasuries halted a four-day decline after a technical indicator showed 10-year yields have climbed to levels that may increase investor demand for U.S. government debt. I believe today could hinge on the Univ of Michigan numbers.
My position on MBS stays Long
(Good time to average down).
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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