Great day yesterday for mortgage rates with a whopping 36 basis point improvement. What does this mean? Consider a $300,000 mortgage with an option to pay 1 point ($3000) at the beginning of the day. With this 36 basis point improvement, that same interest rate may have dropped $1000 in cost by the end of the day with many Lenders across the country.
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 Friday 11-9-2012 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 SIGNIFICANT IMPROVEMENT to pricing (and will typically warrant a pricing adjustment by most Lenders). Thursday's SIGNIFICANT IMPROVEMENT netted a change of 36 basis points (bps).
(hint: upward activity is good, downward activity is bad)
The following chart shows market activity thus far 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)
2.5 Coupon: Open 102.656 Change -0.063
3.0 Coupon: Open 105.422 Change -0.031
3.5 Coupon: Open 106.781 Change -0.031
5 Year: Open 100.586 Change 0.063 Yield 0.630
10 Year: Open 100.156 Change 0.219 Yield 1.608
30 Year: Open 99.984 Change 0.531 Yield 2.751
Key Economic Data:
EUR/USD: Open 1.2746 Change -0.0041
GBP/USD: Open 1.5982 Change -0.0058
USD/JPY: Open 79.450 Change -0.150
Oil: Open 84.68 Change -0.42
Key Economic Data:
Import prices for Oct: Actual 0.5%, Consensus 0.0%, Last 1.1%.
Export prices for Oct: Actual 0.0%, Consensus 0.2%, Last 0.8%.
6:55: Univ of Michigan for Nov
Sentiment prelim: Consensus 83.0, Last 82.6.
Conditions prelim: Consensus 88.8, Last 88.1.
Expectations prelim: Consensus 79.6, Last 79.0.
7:00: Wholesale for Sep
Inventories: Consensus 0.4%, Last 0.5%.
Sales: Consensus 0.7%, Last 0.9%.
7:30: ECRI weekly index: Last 126.6
Stocks in Europe and U.S. equity- index futures declined on concern political wrangling will slow
the global recovery. The euro weakened for a third day against the dollar and Treasuries advanced. The Stoxx Europe 600 Index lost 0.5% at 7:25 a.m. in New York. Standard & Poor’s 500 Index futures slipped 0.3%, signaling the gauge will extend its biggest two-day drop in a year. The yield on 10-year U.S. Treasury yield dropped three basis points to 1.59% and similar-maturity German yields fell four basis points to 1.33%. The euro slid 0.2% to $1.2720. Gold futures in New York rose 0.3% to $1,731.40 an ounce. Euro-area finance ministers may not make a decision on unlocking funds for Greece until late November as they await a report on the country’s compliance with bailout terms, a European Union official said. The U.S. risks entering a recession should policy makers fail to avoid the so-called fiscal cliff of automatic tax increases and spending cuts next year, Fitch Ratings said. “Markets continue to trade on a weak note given lingering fiscal cliff concerns and worries about whether Greece will get
the funding it needs to meet debt payments,” Nick Verdi, a currency strategist at Barclays Plc in Singapore, wrote in a report today.
My position on MBS stays Long.
But keep a close eye out for some Selling as traders could close long positions to protect profits over the long weekend.
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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