The great rate improvements of last week came to a screeching halt on Friday with a whopping 36 point loss. Although rates are still hovering at historic lows, we are all hoping Friday's trend halts quickly. Thus far, today's market is up 6 basis points.
Did you know you have a free resource to research interest rates each day? You can even 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 so you don't get duped by clever advertising campaigns.
The Mortgage Street Smarts of where mortgage interest rates are going (and why):
The following information is current as of Monday 8-27-2012 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 Friday with a WORSENING to pricing (and will typically warrant a pricing adjustment by most Lenders). Friday's WORSENING resulted in a change of 36 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 103.172 Change 0.156
3.5 Coupon: Open 105.516 Change 0.109
4.0 Coupon: Open 106.859 Change 0.063
Treasuries:
5 Year: Open 99.078 Change 0.063 Yield 0.691
10 Year: Open 99.656 Change 0.141 Yield 1.663
30 Year: Open 99.594 Change 0.406 Yield 2.770
Key Economic Data:
EUR/USD: Open 1.2510 Change 0.0017
GBP/USD: Open 1.5811 Change -0.0011
USD/JPY: Open 78.640 Change 0.040
Oil: Open 96.63 Change 0.47
Key Economic News:
Midwest manufacturing for Jul: Actual 95.6, Last 94.1.
7:30 Dallas Fed mfg bus index for Aug: Last -13.20.
Advice:
With not much to go on from the news front, I would expect some buying to re-open position closed last Friday.
My position on MBS stays Long.
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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