Home > Blogs > Jason E. Gordon > Mortgage Street Smarts

Mortgage Rate Update 3-8-2016: Trends & Projections

By Jason E. Gordon

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

March 08, 2016 12:26 AM

Lowest Mortgage Rates in San Diego - Jason Gordon Mortgage

Nice start today! Weaker than expected export data in China continues to raise concerns about the pace of the global economic growth.

Compared to Monday's closing, the market has opened with a 0.250 improvement to the Points/Credits associated with any given interest rate option (but we are trending in the wrong direction early).

This daily mortgage interest rate report is designed to provide Borrowers & Real Estate Professionals 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 Tuesday 3-8-2016 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. Monday's WORSENING netted a change of 3 basis points (bps).

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

Lowest Mortgage Rates in San Diego - Jason Gordon Mortgage

The following chart summarizes today's market activity:

Lowest Mortgage Rates in San Diego - Jason Gordon Mortgage

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

Lowest Mortgage Rates in San Diego - Jason Gordon Mortgage

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

Lowest Mortgage Rates in San Diego - Jason Gordon Mortgage

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 scenario involving a 740+ credit score, 25% down payment, owner occupied, single family residence, with impound account, with a loan amount up to $417,000 to accompany this pricing.

It bears noting that this chart does not necessarily represent today's best mortgage rates.

Lowest Mortgage Rates in San Diego - Jason Gordon Mortgage

Beware of relying on Interest Rate Quotes like the one above!

CLICK HERE TO READ ABOUT THE TRUTH BEHIND MORTGAGE QUOTES

Market Commentary (Neil Trennery)

Market Update

FNMA in 32s

Cpn 2.5 Chg 0.086 Bid 99.056

Cpn 3.0 Chg 0.076 Bid 102.053

Cpn 3.5 Chg 0.056 Bid 104.191

Cpn 4.0 Chg 0.041 Bid 106.236

Treasury in 32s

UST 5 YR Chg 0.090 Bid 98.28+ Yield 1.3547

UST 10 YR Chg 0.192 Bid 98.016 Yield 1.8392

UST 30 YR Chg 1.136 Bid 97.062 Yield 2.6352

Bank Rates

Discount 1.00%

Fed Funds 0.50%

Prime 3.50%

Currency

Euro Bid 1.10328

Pound Bid 1.42069

Yen Bid 112.955

News:

10:00: Treasury 3yr Aucton

Advice:

Treasuries gained with Japanese bonds, whose 10-year yields extended their push below zero, as stock-market declines drove demand for the relative safety of sovereign debt. The worlds two biggest bond markets advanced after official data showed Chinese exports tumbled and Japans economy contracted, sending stocks in the region lower. The move marked a revival of the rush to government securities in January and February as shares around the world tumbled. Yields on Japans

30-year sovereign debt plunged 22 basis points, falling to 0.475 percent after earlier touching a record low of 0.468 percent. Japanese government bonds are driving global debt markets, Goldman Sachs Group Inc. said last week, basing its conclusion on an analysis of the securities volatility. As yields fell to records in January in Japan, local investors loaded up on the largest quantity of French sovereign debt since mid-2014, data released overnight by the Bank of Japan and the nations finance ministry showed. In the same month, Chinese investors bought 1.97 trillion yen ($17.4 billion) of Japanese money-market securities in January, the most on record since 2005. Commodities and risk assets are stalling, said Barra

Sheridan, a rates trader at Bank of Montreal in London. The data wasnt particularly positive overnight in China and Japan - - particularly Chinas trade data, which is helping Treasuries, he said. After what went down with JGBs overnight -- it was

crazy, Sheridan said. U.S. 10-year yields, a benchmark for interest rates around the world, fell six basis points, or 0.06 percentage point, to 1.85 percent as of 7:39 a.m. New York time, according to Bloomberg Bond Trader data. The 1.625 percent security due in February 2026 climbed 17/32, or $5.31 per $1,000 face amount, to 98.

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

2016 Economic Forecast (Barry Habib)

Trusted Industry Advisor

Jason Gordon Mortgage - www.GordonMortgage.com

The above information was compiled and distributed by San Diego Residential Mortgage Specialist, Jason 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 and/or The TBWS Group.

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