Better-than-expected unemployment figures led to a pretty tough day for mortgage rates on Thursday with nearly the entire day spent in negative territory. The day saw the majority of Lenders throughout the country post mid-day pricing adjustments to their rate sheets to reflect the market deterioration. The net result was a worsening of 30 basis points. We began today with a drop of an additional 21 basis points, but appear to be heading in the right direction as this update is being published.
This daily mortgage interest rate report is provided to equip 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 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 Friday 10-5-2012 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 Thursday with a WORSENING to pricing (and will typically warrant a pricing adjustment by most Lenders). Thursday's WORSENING netted a change of 30 basis points (bps).
(hint: upward activity is good, downward activity is bad)
The following chart shows the activity thus far 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:
2.5 Coupon: Open 102.250 Change -0.625
3.0 Coupon: Open 105.172 Change -0.188
3.5 Coupon: Open 106.750 Change -0.141
Treasuries:
5 Year: Open 99.781 Change -0.227 Yield 0.670
10 Year: Open 99.031 Change -0.609 Yield 1.734
30 Year: Open 95.859 Change -1.484 Yield 2.960
Key Economic Data:
EUR/USD: Open 1.3017 Change 0.0021
GBP/USD: Open 1.6189 Change 0.0021
USD/JPY: Open 78.460 Change 0.350
Oil: Open 91.00 Change -0.72
Key Economic Data:
Employment for Sep
Non-farm payrolls: Actual 114k, Consensus 113k, Last 96k.
Private payrolls: Actual 104k, Consensus 130k, Last 103k.
Manufacturing payrolls: Actual -16k, Last -15k.
Government payrolls: Actual 10k, Last -7k.
Unemployment rate: Actual 7.8%, Consensus 8.2%, Last 8.1%.
12:00: Consumer credit: Consensus 6.5b, Last -3.28b.
Advice:
The unemployment rate in the U.S. unexpectedly fell to 7.8% in September, the lowest since January 2009 as employers took on more part-time workers. The economy added 114,000 workers last month after a revised 142,000 gain in August that was more than initially estimated, Labor Department figures showed today in Washington. The median estimate of 92 economists surveyed by Bloomberg called for an advance of 115,000. The jobless rate dropped from 8.1% and hourly earnings climbed more than forecast. Improving employment prospects that lead to stronger wage growth provide workers with the wherewithal to boost their spending, helping cushion the economy from a global slowdown.
I believe this is a short term bump.
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.
Do you want mortgage rate updates on your cell phone? Simply text the word UPDATES to 79564
Click here for daily mortgage interest rate updates and projections for San Diego's lowest mortgage rates
