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Mortgage Rate Update 10-20-14: Trends & Projections

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

Today is a quiet day in terms of economic news, yet rate volatility persists as Investors attempt to squeeze profits from early trading.

Compared to Friday's closing, the market has opened with a 0.125% IMPROVEMENT to the Points/Credits associated with any given interest rate option.

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 10-20-2014 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 WORSENING to pricing. Friday's WORSENING netted a change of 3 basis points (bps).

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

Today's Mortgage Rates San Diego - www.GordonMortgage.com

The following chart summarizes todays market activity:

Today's Mortgage Rates San Diego - www.GordonMortgage.com

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

Today's Mortgage Rates San Diego - www.GordonMortgage.com

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

Today's Mortgage Rates San Diego - 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.

 

 Today's Mortgage Rates San Diego - www.GordonMortgage.com

 

 

 

 

 

 

 

 

 

 

 

 

Market Commentary (Neil Trenerry)

FNMA - Month Aug

Cpn 3.0 Chg 0.2500 Bid 100.89063
Cpn 3.5 Chg 0.1719 Bid 103.89063
Cpn 4.0 Chg 0.1406 Bid 106.40625

 

Treasury
UST 5 YR Chg 0.1406 Bid 101.71094 Yield 1.3910
UST 10 YR Chg 0.2969 Bid 101.84375 Yield 2.1650
UST 30 YR Chg 0.6553 Bid 103.65625 Yield 2.9400

 

Currency
Euro Bid 1.2761 Chg 0.0001
Pound Bid 1.6137 Chg 0.0043
Yen Bid 106.810 Chg -0.060
Light Crude
Last 82.94

 

Key Economic Data:
No news items.

 

Advice:
Treasuries were little changed before a report tomorrow economists forecast will show home sales picked up. Following the most turbulent period for U.S. bonds in more than three years, 10-year yields fluctuated around last weeks close of 2.195 percent. U.S. existing home sales rose 1 percent last month, based on a Bloomberg News survey of economists, after falling 1.8 percent in August. Federal Reserve Bank of Boston President Eric Rosengren said the U.S. bond-purchase program could be extended if there is additional erosion in the growth outlook. We expect the U.S. economy to remain resilient in the face of weaker global growth, said Nick Stamenkovic, a senior strategist at RIA Capital Markets Ltd. in Edinburgh. We doubt the recent rally in Treasuries will be sustained over the medium term, with 10-year yields gravitating towards 3 percent in the next 6 to 12 months. The U.S. 10-year yield fell one basis point, or 0.01 percentage point, to 2.19 percent at 8:11 a.m. in New York, according to Bloomberg Bond Trader prices. The 2.375 percent note due in August 2024 rose 2/32, or $0.63 per $1,000 face amount, to 101 5/8. The yield dropped to 1.86 percent on Oct. 15, the lowest level since May 2013.

 

My position on MBS:

 

Short term stays 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

Market Commentary (Dan Rawitch)

Bonds have stablized at good point. We should continue to see movement a little sideways, but still within the upward channel. CPI will be closely watched this week, as it is and always has been a KEY component to sustained lower bond prices.

 

No news today, so just watch the trading range of 103.50- 104.20.

 

 

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.

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