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Mortgage Rate Update 3-27-13: Trends Projections & Today's Best Rates

By Jason E. Gordon

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

March 27, 2013 04:01 AM

Pending home sales came in lower than expected. Concerns about Italy have helped Mortgage Backed Security prices this morning. There will be a 5 Year Treasury auction later this morning. Note that the bond markets close early tomorrow, and are closed on Friday (in observance of Good Friday).

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 Wednesday 3-27-2013 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 Tuesday with an IMPROVEMENT to pricing. Tuesday's IMPROVEMENT netted a change of 3 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 98,7500 Change -0.0938

3.0 Coupon: Open 102.8281 Change -0.0625

3.5 Coupon: Open 105.3906 Change -0.0313

Treasuries:

5 Year: Open 99.7344 Change -0.0859 Yield 0.8050

10 Year: Open 100.5469 Change -0.1719 Yield 1.9370

30 Year: Open 99.3231 Change -0.2656 Yield 3.1600

Key Economic Data

EUR/USD: Open 1.2860 Change 0.0008

GBP/USD: Open 1.5147 Change -0.0025

USD/JPY: Open 94.270 Change 0.150

Oil: Open 95.68

Key Economic Data:

ICSC chain stores

Week-on-week: Actual -1.7%, Last 1.4%.

Year-on-year: Actual 1.0%, Last 2.3%.

Durable goods for Feb

Index: Actual 5.7%, Consensus 3.8%, Last -4.9%, Revised -3.8%

Ex-transports: Actual -0.5%, Consensus 0.5%, Last 2.3%, Revised 2.9%.

Ex-defense: Actual 4.5%, Last -0.1%, Revised 1.1%.

Redbook

Month-on-month: Actual 0.6%, Last 0.7%.

Year-on-year: Actual 2.6%, Last 2.9%.

CaseShiller for Jan

20 mm SA: Actual 1.0%, Consensus 0.9%, Last 0.9%.

20 mm nsa: Actual 0.1%, Consensus 0.2%, Last 0.2%.

20 yy: Actual 8.1%, Consensus 7.9%, Last 6.8%.

7:00: Consumer confidence for Mar: Consensus 68.0, Last 69.6.

7:00: New home sales for Feb: Consensus 0.422m, Last 0.437mm.

7:00: Richmond Fed comp index for Mar: Last 6.

7:30: Texas serv sect outlook for Mar: Last 5.2.

7:30: Dallas Fed services reve for Mar: Last 14.2.

Advice:

Treasuries declined as data signaled the economic recovery is building momentum and the U.S. prepared to auction $35 billion of two-year securities. Treasury 10-year note yields rose from almost a one-week low reached yesterday after Cyprus won a bailout imposing losses on bondholders. Data showed orders for U.S. durable goods rose more than forecast in February and residential real-estate prices climbed in January by the most since June 2006. The U.S. economy is still moving along in the right direction, said Tom Simons, an economist in New York at Jefferies LLC, one of the 21 primary dealers that trade with the Federal Reserve. The pace of progress is somewhat modest. The benchmark 10-year note yield rose one basis point, or 0.01 percentage point, to 1.93 percent at 9:11 a.m. New York

time, according to Bloomberg Bond Trader prices. The 2 percent note maturing in February 2023 fell 3/32, or 94 cents per $1,000 face amount, to 100 19/32. The yield touched 1.89 percent yesterday, the lowest since March 19, after climbing to 2.08 percent on March 8, the highest since April 2012. The Standard & Poors/Case-Shiller index of property values in 20 cities climbed 8.1 percent in January from the same month in 2012 after rising 6.8 percent in the year ended in December, the group said today in New York. The increase exceeded the 7.9 percent median forecast by economists in a Bloomberg survey. Bookings for goods meant to last at least three years rose 5.7 percent, the most since September, after a 3.8 percent drop the prior month, a Commerce Department report showed today in

Washington. The median forecast of 80 economists surveyed by Bloomberg called for a 3.9 percent advance. Figures on capital goods pointed to a pickup in business spending this quarter.

My position on MBS stays Neutral.

Market Commentary (Dan Rawitch)

Here is the link to today's video:

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

The Dow is down 90 points and the 10 year is up 1/2 point. All of this started with concerns over what looks like yet another Italian election and some dissapointing data in other parts of Europe. This mornings move could be signifiiant as we are signaling a potential breakout on the high side. A clear close over 103.20 will confirm the move. Most likely we close this mornings gap and then we will see if the market is ready to break out of the 6 month channel, we've been following. Lets hope for a bullish close today, after we close the gap!

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. All Market Commentary is provided via The Mortgage Coach and/or their RateWatch technology software.

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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