Introducing an easy-to-follow inside look at mortgage rate activity, featuring charts, rate sheets, market commentary, and even video recordings all in one daily morning blog! Whether you're a newbee, market analyst (or somewhere in between), keep yourself informed of where mortgage interest rates are going (and why). Subscribe to this free daily update by clicking the button on the right hand side of this page and always be aware of todays best mortgage rates. Although the title of this blog mentions San Diego, these updates are good for the entire state of California.
While basic understanding of the "book smarts" within the mortgage industry will help you understand specific terminology, loan programs, and features, there is so much more you will need to know in order to make an informed financial decision.
My approach to providing education strives to further your understanding beyond the "book smarts" of the mortgage industry, and learn the valuable "street smarts" that will help you achieve the best possible results, while avoiding the most common pitfalls that non-informed Borrowers and Real Estate Professionals have experienced.
The Mortgage Street Smarts of where mortgage interest rates are going (and why):
The following information is current as of Friday 2-25-2011 and will help you understand todays 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 Thursday with a WORSENING to pricing (as indicated by the chart below). Note that any movement that exceeds 25 basis points is significant (and will typically warrant a pricing adjustment by most Lenders). Thursday's WORSENING resulted in a change of 3 basis points (bps).
The following chart shows the market activity thus far today (hint: upward activity is good, downward activity is bad):
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.
Analyst #1: Neil Trenerry
FNMA 30-YR 4.5%
Previous close 101.620
Opened Up 003bp @ 101.656
Key Economic Data:
EUR / USD 1.3755 Down 0.0045
USD / JPY 81.6770 Down 0.2153
GBP / USD 1.6093 Down 0.0045
OIl 97.09 Down 0.19
Gold 1,406.40 Down 9.40
Key Economic News:
The economy grew at a 2.8% annual rate in the fourth quarter, slower than previously calculated and less than forecat as state and local govemnents made deeper cuts in spending. The revised increase in gross domestic product compares with a 3.2% estimate issued last month and a 2.6% gian in third quarter, figures from the Commerce Department showed today in Washington. The economy, excluding inventories, grew at a 6.7% pace, the mot since 1998.
The Federal Reserve's preferred price gauge, which is tied to consumer spending and strips out food and energy costs, climbed at a 0.5% annual pace. The Fed's longer term projection for inflation is a range of 1.6% to 2%. Rising oil and food costs may push up the prices of other goods and services.
6:00: PCE Core price index (Q\Q Annual) Consensus +0.4%. Last +0.4%.
7:00: U of Michigan cosumer sentiment - Final for Feb No Consensus. Last 75.3 mom.
With the tide seeming to be turning in Libya, and a good run for MBS pricing this week. You might want to protect these gains by locking today.
I would lock today.
My position on MBS has changed to neutral today (Seller).
Analyst #2 Dan Rawitch
Here is the link to our daily update
A slight downward revision to the GDP number, is exactly what the economy does not need right now. The number is only horrible if we need jobs...which I think we do.
Still remaining nicely in the up channel as we have for the past 15 days. I love that we stayed over 101.50, in light of an average auction and some decent news yesterday. We still appear to be positioned to run at 102
I believe this is still the beginning of long and positive move up. having said that...it is NEVER a straight line up and you should always expect the unexpected.