The market was dormant yesterday in honor of Veteran's Day. In today's early trading, we find ourselves down 15 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 Tuesday 11-13-2012 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 Monday with a NEUTRAL RESULT to pricing (and will typically warrant a pricing adjustment by most Lenders). Monday's NEUTRAL RESULT netted a change of 0 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 102.531 Change 0.156
3.0 Coupon: Open 105.188 Change 0.141
3.5 Coupon: Open 106.653 Change 0.016
Treasuries:
5 Year: Open 100.641 Change 0.094 Yield 0.619
10 Year: Open 100.406 Change 0.281 Yield 1.581
30 Year: Open 100.781 Change 0.831 Yield 2.712
Key Economic Data:
EUR/USD: Open 1.2707 Change -0.0024
GBP/USD: Open 1.5875 Change -0.0001
USD/JPY: Open 79.490 Change -0.080
Oil: Open 84.73 Change -0.85
Key Economic Data:
NFIB business optimism: Actual 93.10, Last 92.80
ICSC chain stores
Week-on-week: Actual 0.7%, Last -0.2%.
Year-on-year: Actual 1.8%, Last 1.4%.
Redbook
Month-on-month: Actual -0.2%, Last -0.6%.
Year-on-year: Actual 1.6%, Last 0.8%.
7:00: IBD economic optimism for Nov: Last 54.0.
11:00: Federal budget for Oct: Consensus -114.0b, Last 75.00b.
Advice:
The biggest Treasury rally in five months is underlining market concern that President Barack Obama and House Republicans will fail to avert $607 billion in mandated spending cuts and tax increases starting Jan. 1. Yields on 10-year Treasuries dropped the most in one day since May to 1.62% after Obama’s re-election Nov. 6. A figure below 1.7% indicates that investors expect gross domestic product to shrink by 0.3% next year as the so-called fiscal cliff takes effect, according to JPMorgan Chase & Co. Rates on longer-term Treasuries have converged with those of non-U.S. government bonds globally, after remaining about 1% point above them in 2011. While the economy is creating jobs, housing prices are recovering and consumer confidence is the highest in five years, bond investors are seeking safety from a possible downturn next year. Yields dropped to a two-month low on the prospect of a divided Congress stalling any budget deal and impeding the recovery from the worst recession since the Great Depression. “The fiscal cliff is being priced in because it’s the biggest risk facing the market right now,” Priya Misra, head of U.S. rates strategy at Bank of America Merrill Lynch in New York, one of the 21 primary dealers that trade with the Federal Reserve, said Nov. 7 in a telephone interview. “Without the cliff we would grow 2 to 2.25%.”
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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