Special offer

Mortgage Rate Update 6-23-14: Trends & Projections

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

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 over 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...share this report with those whom you care about!

San Diego Mortgage Rates - Jason Gordon - www.JasonGordonMortgage.com

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

The following information is current as of Monday 6-23-2014 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 a SIGNIFICANT IMPROVEMENT to pricing. Friday's SIGNIFICANT IMPROVEMENT netted a change of 28 basis points (bps).

(Note: Upward activity on these charts is GOOD, downward activity is BAD)

Gordon Mortgage Group - www.GordonMortgage.com

The following chart summarizes todays market activity:

Gordon Mortgage Group - www.GordonMortgage.com

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

 Gordon Mortgage Group - www.GordonMortgage.com

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

Gordon Mortgage Group - www.GordonMortgage.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.

Gordon Mortgage Group - www.GordonMortgage.com

Market Commentary (Neil Trenerry)

FNMA - Month Jul
Cpn 3.0 Chg 0.0938 Bid 98.23438
Cpn 3.5 Chg 0.0938 Bid 102.45313
Cpn 4.0 Chg 0.0469 Bid 105.78125

Treasury
UST 5 YR Chg 0.0000 Bid 99.14063 Yield 1.6820
UST 10 YR Chg 0.0938 Bid 99.15625 Yield 2.5970
UST 30 YR Chg 0.2344 Bid 99.12500 Yield 3.4220

Currency
Euro Bid 1.3594 Chg -0.0005
Pound Bid 1.7009 Chg -0.0001
Yen Bid 101.860 Chg -0.210
Light Crude
Last 106.80

Key Economic Data:
National Activity Index for May: Actual 0.21, Last -0.32.
6:45: Markit Mfg PMI Flash for Jun: Consensus 56.5, Last 56.4.
7:00: Existing Home Sales for May: Consensus 4.73m, Last 4.65m.

Advice:
Treasury 10-year yields were at almost the highest compared with equivalent German bonds in 15 years before a report predicted to show home sales increased at the fastest pace in almost a year. A gauge of expectations for consumer prices over 10 years climbed to the highest in five months before Federal Reserve officials including Fed Bank of Philadelphia President Charles Plosser speak this week with markets indicating about a 60 percent chance interest rates will rise by July next year. European Central Bank President Mario Draghi signaled rates will probably remain low for at least 2 1/2 years. The U.S. plans to sell $107 billion of coupon-bearing debt this week. The Fed will be tightening rates while the ECB may possibly ease policy further, said Peter Chatwell, a fixed-income strategist at Credit Agricole SAs corporate and investment banking unit in London. Its a structural investment theme. The benchmark 10-year yield was little changed at 2.60 percent at 8:33 a.m. New York time, according to Bloomberg Bond Trader data. The price of the 2.5 percent note due May 2024 was at 99 1/8. Treasuries yielded 128 basis points more than Germanys 10-year bunds. The spread reached 130 basis points on June 19, the most since June 1999. The gap will widen to 137 basis points by the end of this year, according to the weighted average of analyst estimates compiled by Bloomberg. Credit Agricoles Chatwell predicted the spread will rise to 150 basis points over the next two years. The five-year yield rose one basis point to 1.69 percent.

My position on MBS:

Short term changes to Neutral
Long term stays Neutral.

Long = I anticipate pricing to improve which leads to lower Rates.
Neutral = Market should stay close to open plus or minimums 25bps.
Short = I anticipate pricing to weaken which leads to higher Rates.

Short term = 1 - 2 days out
Long term = 30+ days out

Trusted Industry Advisor

San Diego Mortgage Rates - Jason Gordon - www.JasonGordonMortgage.com

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) Certified Mortgage Coach (CMC), and Certified Military Housing Specialist (CMHS), 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.GordonMortgage.com or www.CrossApproval.com or more information.

Click here for daily mortgage interest rate updates and projections for San Diego's best mortgage interest rates

Comments (0)