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Mortgage Rate Update 3-11-13: Trends Projections & Today's Best Rates

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

Fairly uneventful day in terms of economic data being reported.  The net result was a slight worsening to the cost of rates by 6 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.  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 Monday 3-11-2013 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 Friday with an IMPROVEMENT to pricing (and will typically warrant a pricing adjustment by most Lenders). Friday's IMPROVEMENT netted a change of 6 basis points (bps).

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

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

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

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

The following chart shows market activity over the past 10 days (hint: green is good, red is bad):

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

The following chart shows market activity over the past 1 month:

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

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 97.8750 Change 0.1094
3.0 Coupon: Open 102.1406 Change 0.0469
3.5 Coupon: Open 104.7969 Change 0.0469

Treasuries:
5 Year: Open 99.3047 Change -0.0156 Yield 0.8930
10 Year: Open 99.5469 Change -0.0156 Yield 2.0510
30 Year: Open 97.6406 Change 0.0000 Yield 3.2480

Key Economic Data
EUR/USD: Open 1.2994 Change -0.0011
40GBP/USD: Open 1.4875 Change -0.0039
USD/JPY: Open 96.110 Change 0.080
Oil: Open 91.62

Key Economic Data:
7:00: Employment trends for Feb: Last 109.4.

Advice:
Treasuries were little changed before reports this week that economists said will show retail sales improved and consumer prices increased in February, adding to signs the worlds largest economy is gaining momentum. Benchmark 10-year yields were at almost an 11-month high as speculation the Federal Reserves effort to spur economic growth is working damped demand for the nations fixed-income assets. A Labor Department report last week showed the U.S. jobless rate unexpectedly dropped to 7.7 percent, a four-year low. Sales at U.S. retailers advanced in February for a fourth month, according to a Bloomberg News survey of economists before the data is released on March 13. There is a clear trend of improving data in the U.S., said Peter Chatwell, a fixed-income strategist at Credit Agricole Corporate & Investment Bank in London. We are expecting to see a big selloff in Treasuries and this is just the start. The jobs data helped to build in to the markets subconscious that U.S. economic data is showing tangible improvement and that builds confidence. Benchmark 10-year yields were little changed at 2.05 percent as of 8:23 a.m. in New York, according to Bloomberg Bond Trader data. The rate climbed to 2.08 percent on March 8, the most since April 5. The price of the 2 percent note due February 2023 was at 99 18/32. The difference between the yields on two-year and 10-year notes, called the yield curve, widened to 1.82 percentage points, close to the highest since April 2012. It averaged 1.5 percentage points in the past year.

My position on MBS stays Long.
( FNMA 2.50 Mar 98*29 )
I still expect the rates to go back down in the medium to long term.

Market Commentary (Dan Rawitch)

Here is the link to today's video:

The Chart is a tad better than it looks, due to bonds rolling over. We have a couple of important news items this week, with CPI and Retail sales being the most important. I would imagine the market will work toward filling in a couple of those gaps this week and slowly move toward the top of the channel. We could see several days of sideways behavior before that happens.

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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