As suspected, yesterday we sharply broke our streak of mortgage pricing improvements. Despite a strong opening today, we again find ourselves currently down 12 basis points.
Amidst an industry seemingly dedicated to spending their advertising dollars in an attempt to confuse thier clients, this daily report is provided to you as a resource to help provide transparency to what is really happening with mortgage rates. Feel free to browse the library and research historical rate updates dating back nearly 2 years 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 Friday 9-7-2012 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 21 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 103.859 Change 0.641
3.5 Coupon: Open 106.094 Change 0.422
4.0 Coupon: Open 107.219 Change 0.219
Treasuries:
5 Year: Open 100.039 Change 0.289 Yield 0.615
10 Year: Open 100.078 Change 0.531 Yield 1.616
30 Year: Open 99.766 Change 0.766 Yield 2.762
Key Economic Data:
EUR/USD: Open 1.2630 Change 0.0135
GBP/USD: Open 1.5929 Change 0.0053
USD/JPY: Open 78.850 Change -0.570
Oil: Open 96.13 Change 0.60
Key Economic News:
Payrolls for Aug
Non-farm payrolls: Actual 96k, Consensus 125k, Last 163k.
Private payrolls: Actual 102k, Consensus 138k, Last 172k.
Government payrolls: Actual -7k, Last -9k.
Manufacturing payrolls: Actual -15k, Consensus 10k, Last 25k.
Unemployment rate: Actual 8.1%, Consensus 8.3%, Last 8.3%.
Average earnings: Actual 0.0%, Consensus 0.2%, last 0.1%.
Average workweek hours: Actual 34.4h, Consensus 34.5h, last 34.5h.
7:30: ECRI weekly index: Last 123.6.
Advice:
Payrolls rose less than projected in August and the unemployment rate declined as more Americans left the labor force, indicating the U.S. labor market is stagnating. The economy added 96,000 workers last month following a revised 141,000 rise in July that was smaller than initially estimated, Labor Department figures showed today in Washington. The median estimate of 92 economists surveyed by Bloomberg called for a gain of 130,000. Unemployment unexpectedly fell to 8.1%, and hourly earnings were unchanged. Employers may be reluctant to expand headcounts as they face a global economic slowdown and the so-called fiscal cliff of automatic tax increases and government spending cuts. The damage inflicted by the lack of progress on jobs is the reason Federal Reserve Chairman Ben S. Bernanke last week said the central bank may need to do more. “Businesses are trying to plan for a climate of uncertainty,” Robert Dye, chief economist at Comerica Inc. in Dallas, said before the report. “There’s too much uncertainty about taxes, about expenditure cuts. The economy is already reacting to it.”
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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