Another tough day for mortgage rates on Tuesday with a net result of a 24 basis points worsening. Several Lenders throughout the country posted mid-day pricing adjustments (increasing the cost of interest rates 0.125- 0.250 points).
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 12-19-2012 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 24 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):
The primary reason being given by most people who remain confident that we wont slide off the fiscal cliff into the ravages of returning recession do not, I confess, fill me with confidence. The reason is that Congresssurelywouldnt put us knowingly into such an untenable fiscal position. I mean, they would NEVER be that stupid, right?
Well, maybe. The theory, though, bears a worrisome familiarity. The U.S. and Russia, when they were the only countries armed to the teeth with nuclear weapons, were certain no one would actually send one of the missiles into the air. Surely, wed all die. We called it mutually assured destruction, or MAD. And it was.
This is perhaps a very harsh analogy. Perhaps it would be better to call it a poker game with outrageously large stakes.
Or perhaps it would be most appropriate to ask, How in the world did the richest nation in the world reach this point, anyway? Its beyond my understanding.
Without rattling on in incredulity, it may prove more relevant to point out that there are, in fact, a few reasonsthough none of them convince me completelyto be somewhat confident that a deal will be struck and the fall from the fiscal cliff averted. And the main reason is the apparent strength in the nations underlying economy. It seems to me to take a little of the heat off the negotiationsbut also, ironically, to keep the heat up high.
You see, if the economy is moving forward in a positive (though admittedly gradual) way, then the results of not being able to negotiate a bipartisan agreement on the various elements comprising the fiscal cliff will be on the backs of the politicians who didnt hang in there and get the job done. We will face what may be a crushing descent into recession because of these peopleand it rather obviously wont be because of an economy that is already slipping down a steep slope.
Surely, most economists would like to avoid the finger of blame here. It could shorten their public careers greatly. Especially when the nation has indicated (through polls) that it already has little confidence in Congress and in those most likely to botch up the possibility of difficult compromise.
And if we wind up falling back into a recession, the effects will be all too easily seen if were falling from todays relative strength. Look for a moment: The poll measuring builder confidencethe NAHB Housing Market Indexhas worked its way up in the last eight months to the 47 level, nearly the elusive point signaling the market is expanding and no longer contracting. The number of jobs has been growing gradually. Mortgage interest rates remain a basis point or two away from record lows. The nations capacity utilization ratewhich we can liken to how much of our national manufacturing is being done, relative to how much could conceivably be donestands strongly at 78.4%. (An 85% rate sends most analysts into palpitations over rising inflation.)
Things are looking upsort of. At least, we seem prepared to weather any storms that we havent spotted on our radar screens yet. And the storms that are all too evident as the fiscal cliff approaches will not get whipped up by a failing economic recovery. Theyll be whipped up by failing political processes.
Theres something else. A wise person used to declare: If you want to solve a problem, find a bigger one. (Counterintuitive at first, but think about it.)
We already have even bigger problems at hand: We are vulnerable to the damage that could be done by squeezing our current economy too tightly at its throat. Thats the potential recession problem. We are also extremely vulnerable to the fact that our system of entitlements simply cannot hold for many more years.
And that, remarkably, seems reason for optimism. Though it is very difficult to get our politiciansand all of us, presumablyto agree on anything of substance, almost all of us agree that we face very serious problems and must do something about them. Perhaps, at long last, we will.
Market Commentary (Barry Habib)
Click on the following link for a brief video conducted by Mr. Habib: http://www.mbshighway.com/nrep/dailyvideo.html
Trusted Industry Advisor
The above information was compiled and distributed by San Diego Residential Mortgage Specialist, Jason E Gordon in an effort to provide transparency regarding true mortgage rate activity and market guidance to consumers and professionals interested in this activity.
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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