For the second day in a row, interest rates have begun to creep back up. Currently, we are up 12 basis points for the day. Too much further momentum in this direction will likely trigger mid-day rate increases for many Lenders across the country.
This daily report is provided to you each day as a resource to provide transparency to what is really happening with mortgage rates. Feel free to browse the library and research historical rate updates dating back nearly 2 years at www.JasonGordon.info whenever desired. Also, make sure to learn about 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.
The Mortgage Street Smarts of where mortgage interest rates are going (and why):
The following information is current as of Wednesday 8-29-2012 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 Tuesday with a WORSENING to pricing (and will typically warrant a pricing adjustment by most Lenders). Tuesday's WORSENING resulted in a change of 3 basis points (bps).
(hint: upward activity is good, downward activity is bad)
The following chart shows the market activity for today:
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.
Market Commentary: Neil Trenerry
FNMA 30-Year:
3.0 Coupon: Open 103.250 Change -0.063
3.5 Coupon: Open 105.563 Change -0.047
4.0 Coupon: Open 106.906 Change -0.016
Treasuries:
5 Year: Open 99.109 Change -0.047 Yield 0.684
10 Year: Open 99.750 Change -0.188 Yield 1.652
30 Year: Open 99.641 Change -0.484 Yield 2.768
Key Economic Data:
EUR/USD: Open 1.2565 Change -0.0014
GBP/USD: Open 1.5816 Change 0.0025
USD/JPY: Open 78.490 Change 0.130
Oil: Open 95.80 Change -0.54
Key Economic News:
Mortgage
Index: Actual 786.1, Last 821.3.
Purchase: Actual 179.9, Last 177.4.
Refinance: Actual 4346.2, Last 4609.9.
30-year Rate: Actual 3.80%, Last 3.86%.
GDP for Q2
Preliminary: Actual 1.7%, Consensus 1.7% Last 1.5%.
Deflator: 1.6%, Consensus 1.6%, Last 1.5%.
PCE Prices: Actual 0.7%, Consensus 0.7%, Last 0.7%.
Consumer: Spending: Actual 1.7%, Last 1.5%.
7:00: Pending home index: Last 99.3. Change: Last -1.4%.
Advice:
The U.S. economy expanded more than previously estimated in the second quarter, reflecting an improvement in the trade deficit and a pickup in household spending on utilities. Gross domestic product climbed at a 1.7% annual rate from April through June, up from an initial estimate of 1.5%, revised Commerce Department figures showed today in Washington. The figure followed a 2% first-quarter pace and matched the median estimate in a Bloomberg survey. The revised data also showed companies invested in new equipment at the weakest pace in almost three years.
My position on MBS stays Long.
Trusted Industry Advisor
The above information was compiled and distributed by San Diego Residential Mortgage Specialist, Jason E Gordon. As a Certified Mortgage Planning Specialist (CMPS) Certified Distressed Property Expert (CDPE) and Certified Mortgage Coach (CMC), 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.jasongordon.net or www.ApprovingSD.com or more information.
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