Will last night's Presidential Debate have an impact on short term mortgage rates? The market opened today 21 basis points in the negative (which proves more costly for borrower's seeking a mortgage). Given the recent market volatility, we can expect much more movement throughout the day. The question is: which direction where rates go today?
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 10-17-2012 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 NEUTRAL RESULT to pricing (and will typically warrant a pricing adjustment by most Lenders). Tuesday's NEUTRAL RESULT netted a change of 0 basis points (bps).
(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.
Market Commentary (Bill Fisher):
If we look closely while seeking out signs of where the real estate market may be going over the longer term, we find a great deal of confusion mixed in with the positive recent signals the market has been sending.
Clearly, there are areas where the market has regained vitiality. As Steve Cook wrote in a recent issue of the Niche Report, “California markets dominate the list of areas experiencing the largest year-over-year increases in their median list prices. In addition, Phoenix, AZ, Boise City, ID, West Palm Beach, FL, Seattle, WA, and Fort Myers, FL appear in the list of top performers.” Along with listing prices, selling prices in these areas have been firming, with all the appearances of a sustainable real estate recovery…except, alas, adequate inventory.
But economists and business leaders warn us not to trust this market activity too completely. It still has its ups and downs, and there are areas of the nation that remain in a slump. The CEO of Home Depot, for example, predicted that we won’t see a “true recovery” for another two years.
Nonetheless, it is difficult not to respond to certain economic indicators with undisguised glee. For example, the National Home Builder Association today disclosed another advance in its Housing Market Index. The index, which stood at 16 a mere year ago, is compiled by phone surveys of major builders, who put numbers to their enthusiasm—or lack thereof—about current conditions in the New Home market. What we end up with here is a sense of how optimistic the industry leaders are.
At 16, the answer was, “not optimistic at all.” This is an index which, like the ISM readings of the manufacturing sector, predicts a positive near-term future as the number approaches and exceeds 50. Anything below that technically indicates contraction. So today’s reading of 41, while far above 16, still doesn’t give us a truly positive reading—if we play by the mathematical rules. But let’s not.
Looking at the “traffic” component of the index—in which builders indicate how many people are coming to see their developments—this particular segment of the index resulted in a 35, which is the highest reading since 2006. All numbers are relative here, and this month’s readings are very good.
We will see other important indicators over the coming three days, too. On Wednesday, the number of mortgage applications relative to recent weeks will be released. It should provide a feet-on-the-ground sense of what has really been happening in the real estate market. We’ll also see whether the number of new housing starts advanced in September, and whether the number of permits taken out for future starts increased. The next Index of Leading Indicators, providing a rough idea of how well the overall economy is faring and should fare in the coming months, is published Thursday. And Friday, we’ll see the number of Existing Home sales that closed in September.
A week of reckoning, in a sense.
As I said, though, the current movements of these indicators are hard to understand. The last set of employment figures was preceded by hints that employment data would be better than they turned out to be. Kind of a statistical bait-and-switch that can turn the stomach of an avid investor.
But even if it’s true that we may have to wait two years for a fully-recovered real estate marketplace, it does appear that we’ll continue to see gradual improvements over that time period.
So while it isn't time to break out the bubbly, it does appear to be a market with increasing prospects of profitability. And we’ll very likely find that fascinating.
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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