The ripple effects of Tuesday's election continue to impact mortgage rates. Thus far today, we have seen a strong improvement of 39 basis points.
This daily mortgage interest rate report is designed to provide Borrowers & Real Estate Profesionals with factual data regarding where rates are at any given time and what trends are propelling current mortgage pricing on any given day. 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 Thursday 11-8-2012 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 Wednesday with a WORSENING to pricing (and will typically warrant a pricing adjustment by most Lenders). Wednesday's WORSENING netted a change of 21 basis points (bps).
(hint: upward activity is good, downward activity is bad)
The following chart shows market activity thus far 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:
2.5 Coupon: Open 102.156 Change -0.125
3.0 Coupon: Open 105.078 Change -0.063
3.5 Coupon: Open 106.547 Change -0.047
Treasuries:
5 Year: Open 100.391 Change -0.039 Yield 0.668
10 Year: Open 99.453 Change -0.484 Yield 1.685
30 Year: Open 99.219 Change -0.375 Yield 2.839
Key Economic Data:
EUR/USD: Open 1.2769 Change -0.0024
GBP/USD: Open 1.5984 Change 0.0001
USD/JPY: Open 79.98 Change -0.160
Oil: Open 85.53 Change 1.080
Key Economic Data:
International Trade for Sep: Actual -41.55b, Consensus -45.0b, Last -44.2b.
Unemployment
Initial jobless claims: Actual 355k, Consensus 370k, Last 363k.
Jobless claims 4-week average: Actual 370.50k, Last 367.25k.
Continued jobless claims: Actual 3.127m, Consensus 3.253m, Last 3.263m.
Advice:
Fewer Americans than forecast filed claims for unemployment insurance last week as the effects of
Hurricane Sandy started to show up. Applications for jobless benefits fell by 8,000 to 355,000 in the week ended Nov. 3, the Labor Department said today in Washington. One state said the loss of electricity due to the storm suppressed filings, while others said workers who lost their jobs as a result of the weather were starting to apply, a Labor Department spokesman said as the data were released to the press. It may take three to four weeks to see the full impact, the spokesman said, which indicates claims may jump back in coming weeks as more storm-related applications begin to be processed. A Labor Department report last week showed the economy addedmore jobs than projected in October and the unemployment rate rose as hundreds of thousands of Americans rejoined the job search as prospects improved. “Over the next few weeks, the number will probably rebound as people re-file the claims they were unable to file,” Ryan Wang, an economist at HSBC Securities USA Inc. in New York, said before the report. “The labor market looks like it’s improved a bit recently.”
My position on MBS stays Long.
Market Commentary (Bill Fisher)
Wednesday evening, my wife and I pondered the fascinating county-by-county maps provided by the Denver Post of what had happened in this election. We were the proverbial Monday morning quarterbacks to the weekend’s slate of important football games…and, as we worked our way through the maps, we realized just how much the task resembled the analysis of a sport.
Indeed, Moneyball—the book and film—came to mind, with its assertion that you can put together the right factors and come out, predictably, with wins. In that respect, Obama’s campaign was a huge success, and Romney’s was somewhat out of synch the times.
What I found staring me in the face, embodied in these maps, was a partial refutation of most of the assumptions I had built up around this election. And, the more I looked, the more I found a great deal of relevance to the real estate industry—the kinds of homes being built, the neighborhoods being developed, the needs of the buyers in particular areas. The kinds of homes and neighborhoods and community services desired and needed by people in certain areas differ in ways we’ve been overlooking at our peril from current assumptions, I increasingly believe.
Okay. Let’s sweep aside my faulty assumptions. I had developed the idea that broad, sweeping views of how the world, our society and our economy work were being distilled into a few important themes. As several commentators suggested, we had, on the one side, people who believe that innovation and economic opportunity are stoked by giving people the broadest array of openings in developing their new business ideas, and we have, on the other side, people who strongly believe that business should be regulated by the government for the protection of our people.
It’s intriguing to me that we feel the one has to be sacrificed for the other. I could go on and on about that, as could anyone in real estate. (One of the thoughts that has been crossing my mind is what a mess we would have in the real estate trade if the activities of real estate professionals were more regulated…simply because real estate remains one of the few “jobs” in which people are willing to work outrageously hard, not just putting in hours, because the potential rewards are so great.)
Anyway, what my wife and I kept noticing as we looked at and compared the blue counties and the red counties. We live in Washington State, and it is split rather neatly up the middle by a mountain range. One side, the east, is red; the other, is blue for the most part (except for the few counties where livings are made primarily in the lumber business).
My wife commented on how, by living in modern cities with uncertain jobs, the people in the blue counties had sets of needs that differed from those in red counties. If you’re living in an agricultural setting, after all, what you need from government differs greatly from the needs expressed by city folk. We think of agricultural populations as feisty, independent, very traditional. These aren’t people who need government officers poking into their business. The city dwellers, on the other hand, need the constant present of police and other services to get safely through the day and night.
Obviously, there isn’t room here to dwell on this adequately. Suffice to say that, without getting to the discussion of personal philosophies, we’ve seen in this election that there are viable generalizations to be made based on where people choose to—or must—live.
And those generalizations spill over into the needs those people have when it comes to their housing. If demographics are changing, as they most definitely are, then the votes move in certain predictable directions—but so do the needs of homebuyers. Their sense of home needs to be answered to, their sense of comfort and safety needs to be served by home and neighborhood designs, and the services offered to city dwellers should be paramount on our minds as we develop new towns and neighborhoods.
We should be studying this election for years, not just for what it tells us about politics but, even more important, for what it tells us about how to design homes and neighborhoods that meet changing needs…and sell like hotcakes.
[P.S.—The markets are taking the election hard, it seems. We’ll get to that next time.]
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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