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Mortgage Rate Update 2-15-13: Trends Projections & Today's Best Rates

By Jason E. Gordon

Mortgage and Lending with CMG Mortgage, San Diego, CA NMLS 259027

February 15, 2013 02:23 AM

Our well anticipated market improvement appears to have been short lived. Thursday closed with a 27 basis point improvement, which was great. That said we are currently down 15 basis points thus far today.

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.

Jason E. Gordon - Mortgage Rate Update - www.jasongordon.net

The Mortgage Street Smarts of where mortgage interest rates are going (and why):

The following information is current as of Friday 2-15-2013 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 an IMPROVEMENT to pricing (and will typically warrant a pricing adjustment by most Lenders). Thursday's IMPROVEMENT netted a change of 27 basis points (bps).

(hint: upward activity is good, downward activity is bad)

The following chart shows a summary of today's activity:

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.

Today's Lowest Interest Rates - San Diego Residential Mortgage Specialist - Jason E Gordon - www.ApprovingSD.com

Market Commentary (Neil Trenerry):

FNMA 30-Year:

2.5 Coupon: Open 99.0313 Change -0.0781

3.0 Coupon: Open 102.8906 Change -0.0469

3.5 Coupon: Open 105.2344 Change -0.0156

Treasuries:

5 Year: Open 100.0313 Change -0.0781 Yield 0.8670

10 Year: Open 99.9375 Change -0.0781 Yield 2.0070

30 Year: Open 99.0469 Change 7.2500 Yield 3.1740

Key Economic Data

EUR/USD: Open 1.3351 Change -0.0007

GBP/USD: Open 1.5489 Change -0.0004

USD/JPY: Open 93.420 Change 0.560

Oil: Open 96.88

Key Economic Data:

NY Fed Manu for Feb: Actual 10.04, Consensus -2.00, Last -7.78.

Net L-T flows, exswaps for Dec: Actual 64.2b, Last 52.3b.

Foreign buying, T-Bonds for Dec: 29.9b, Last 26.4b.

Overall net capital flow for Dec: Actual 25.2b, Last 27.8b.

6:15 Industrial output for Jan: Consensus 0.2%, Last 0.3%.

6:55: Univ of Michigan Prelim for Feb

Sentiment: Consensus 74.8, Last 73.8.

Conditions: Consensus 885.5, Last 85.0.

Expectations: Consensus 67.2, Last 66.6.

1yr inflation: Last 3.3%

5yr inflation: Last 2.9%

7:30 ECRI weekly index: Last 130.2.

Advice:

Treasuries declined after a report showed manufacturing in the New York region unexpectedly expanded in February, adding to optimism the U.S. economy is gaining momentum. Yields on benchmark 10-year bonds climbed above 2% after the Federal Reserve Bank of New Yorks general economic index climbed to 10, the highest since May 2012. Readings of less than zero signal a contraction of manufacturing. It will weigh on the market initially, said Ira Jersey, an interest-rate strategist in New York at Credit Suisse Group AG, one of the 21 primary dealers that trade with the Fed. Its another piece of reasonably good data. The yield on the 10-year note rose one basis point, or 0.01% point, to 2.01 percent at 8:35 a.m. New York time, according to Bloomberg Bond Trader data. It has risen six basis points in the week. The 2% security due February 2023 fell 3/32, or 94 cents per $1,000 face amount, to 99 29/32. U.S. financial markets will be shut on Feb. 18 for a public holiday. A report from the Fed is projected to show production at U.S. factories rose 0.2% in January from the prior month. That would be a third month of gains and compares with a 0.3% increase in December. The Thomson Reuters/University of Michigan index of consumer sentiment advanced to 74.8 in February from 73.8 last month, economists in another poll forecast.

My position on MBS changes to Neutral.

Market Commentary (Dan Rawitch):

Here is the link to today's video:

http://www.ratewatch.com/ratewatchnow.html

Happy Friday...the economic news was somewhat mixed but mostly unfriendly to bonds. We are at a critical juncture from a technical standpoint. There is more pressure and risk that we fall to 102, then there is upside that we run to 103.80. I move and close above 103.00 will be important can could begin the breakout we want to the upside. A move below 102.70ish...will do just the opposite. I'd stay very alert right here!

Trusted Industry Advisor

San Diego Residential Mortgage Specialist Jason E Gordon

The above information was compiled and distributed by San Diego Residential Mortgage Specialist, Jason E Gordon in an effort to provide transparency regarding true mortgage rate activity and market guidance to consumers and professionals interested in this activity.

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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