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Mortgage Rate Update 3-5-13: Trends Projections & Today's Best Rates

By Jason E. Gordon

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

March 05, 2013 09:41 AM

After a fairly rocky day, we ended the day slightly below where we began (-3 bps).

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. To make things easier, I have also posted a quick report on How To Read The Charts Below.

Also, make sure to learn THE TOP 10 THINGS TO KNOW ABOUT MORTGAGE RATES (to help understand the relationship between rates & fees/credits) along with 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). Remember, we all make better decisions in life when we have the actual facts to analyze!

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 Tuesday 3-5-2013 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 Monday with a WORSENING to pricing (and will typically warrant a pricing adjustment by most Lenders). Monday's WORSENING netted a change of 9 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 99.6250 Change -0.0469

3.0 Coupon: Open 103.4844 Change -0.0313

3.5 Coupon: Open 105.7344 Change -0.0156

Treasuries:

5 Year: Open 99.8906 Change -0.0625 Yield 0.7710

10 Year: Open 100.9531 Change -0.1406 Yield 1.8940

30 Year: Open 100.4375 Change -0.2813 Yield 3.1030

Key Economic Data

EUR/USD: Open 1.3045 Change 0.0019

40GBP/USD: Open 1.5155 Change 0.0040

USD/JPY: Open 93.100 Change -0.360

Oil: Open 90.44

Key Economic Data:

No new items

Advice:

Treasuries declined for a second day before a report that economists forecast will show U.S. service industries expanded, reducing demand for the safety of fixed-income assets. Ten-year Treasuries dropped with German bunds as stocks rallied after China vowed to maintain its growth target and an industry report showed euro-area manufacturing and services contracted less than economists forecast in February. A report later this week will show U.S. employers added 160,000 jobs last month after an increase of 157,000 in January, according to analysts in a Bloomberg News survey. Recent data pointed to economic recovery in the U.S., said John Stopford, head of fixed income at Investec Asset Management in London. If this continues in the second half of the year, Treasury yields will have to rise. Benchmark 10-year yields rose two basis points, or 0.02 percentage point, to 1.90 percent at 7:21 a.m. in New York, according to Bloomberg Bond Trader data. The price of the 2 percent note due February 2023 fell 6/32, or $1.88 per $1,000 face amount, to 100 29/32.The rate on similar-maturity German bunds climbed three basis points to 1.44 percent. The Institute for Supply Managements index of U.S. non-manufacturing businesses, which cover almost 90 percent of the economy, was 55 in February, versus 55.2 in January, based on a Bloomberg News survey of economists. Readings greater than 50 signal expansion.

My position on MBS stays Long.

Market Commentary (Dan Rawitch)

Here is the link to today's video:

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

The ISM services index was a bit better than expected. I continue to see downward pressure as gravity pulls us toward the bottom of the channel. Without some gravity defying news...I'd certainly be ready to test the lows over the days to come.

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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