The numbers do not look favorable initially as the market has opened. There was a Mortgage Backed Security (MBS) monthly coupon rollover after the close of trading yesterday which had a net effect of -23.78 basis points. As with all rollover coupons, take the chart patterns below with a grain of salt.
This daily mortgage interest rate report is designed to provide 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 Wednesday 10-10-2012 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 netted a change of 6 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 102.375 Change -0.047
3.0 Coupon: Open 104.828 Change -0.016
3.5 Coupon: Open 106.422 Change -0.016
Treasuries:
5 Year: Open 997503 Change -0.063 Yield 0.676
10 Year: Open 98.953 Change -0.188 Yield 1.741
30 Year: Open 96.000 Change -0.328 Yield 2.952
Key Economic Data:
EUR/USD: Open 1.2884 Change 0.0002
GBP/USD: Open 1.6001 Change 0.0013
USD/JPY: Open 78.250 Change 0.100
Oil: Open 91.98 Change -0.410
Key Economic Data:
Mortgage Market
Index: Actual 1008.1, Last 1020.4.
Purchase: Actual 198.9, Last 194.2.
Refinance: Actual 5772.6, Last 5888.0.
30-year Rate: Actual 3.56%, Last 3.53%.
7:00: Wholesale Inventories for Aug: Consensus 0.5%, Last 0.7%.
11:00: Federal budget for Sep: Consensus 42.0b, Last -191.0b.
Advice:
Treasuries declined, pushing 10-year yields toward the most in more than two weeks, before the U.S.sells $21 billion of the notes, the second of three auctions of coupon-bearing securities this week totaling $66 billion. Thirty-year bonds fell for the fourth time in the past five trading days before the Federal Reserve releases its Beige Book business survey today. Fed Vice Chairman Janet Yellen said asset purchases by the central bank that boost U.S. economic growth will benefit the world. U.S. yields rose before Spanish Prime Minister Mariano Rajoy meets French President Francois Hollande in Paris as investors wait to hear if Spain will request a sovereign bailout. “Investors are taking a wait and see stance until we see further developments, particularly in Spain,” said Nick Stamenkovic, a fixed-income strategist at RIA Capital Markets Ltd. in Edinburgh. “The U.S. economy is on a relatively steady footing. Some of the pessimism about the U.S. is overdone” and 10-year yields will rise toward 2 percent by year end, he said.
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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