Want to know what mortgage interest rates will do this week? 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 Monday 2-28-2011 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 Friday with an IMPROVEMENT 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). Friday's IMPROVEMENT resulted in a change of 15 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 101.810
Opened Flat @ 101.810
Key Economic Data:
EUR / USD 1.3846 Up 0.0092
USD / JPY 81.8393 Up 0.1633
GBP / USD 1.6233 Up 0.0114
OIL 97.57 Down 0.31
Gold 1,412.50 Up 3.20
Key Economic News:
Consumer spending rose less than forecast in January as increasing food and fuel prices caused consumers to cut back on other goods and services. Purchases increased 0.2%, the smallest gain since June and half the median forecast of econmists, Commerce Department figures showed today in Washington. Income climbed more than projected, reflecting the tax-cut compromise reached by President Obama and Congressional Republicans in December, and inflation remained below the Federal Reserve's long-term forecast.
6:45 Chicago purchasing manager's index for Feb. No forecast. Previous 68.8 mom.
7:00: Pending home sales for Jan. No forecast. Previous +2.0%.
With oil starting to drop and the dollar weaker against most major currenices, and consumer spending not going to crazy, this should help the markets. But traders seem to be waiting to see what happens with the Chicago purchasing manager's index and pending home sales.
My position on MBS stays neutral today.
Analyst #2 Dan Rawitch
Here is the link to our daily video
Mixed news again today...I believe as the day goes on the bond market will decide the net effect of the news is somewhat bond friendly. Nice to see a small rise income, which resulted from the tax cuts...not surprised consumers were unwilling to part with any of it.
Trouble in Libya continues, as does fear of increased oil prices. I would expect the Dow to also change its point of view as the day goes on, I am surprised to see such a large increase, thus far in the morning.
I still see 102 in the horizon...perhaps we flatten out and maybe even correct a bit from there. Still see a longer and bigger move up coming our way, after that!