Despite a sluggish morning, followed by an afternoon rally, Thursday's trading day ended with a nuetral result to where it originally opened. After yesterday's close, there was a Mortgage Backed Security (MBS) coupon rollover with a net effect of -26.94 basis 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 Friday 1-11-2013 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 NEUTRAL RESULT to pricing (and will typically warrant a pricing adjustment by most Lenders). Thursday's NEUTRAL RESULT netted a change of 0 basis points (bps).
(hint: upward activity is good, downward activity is bad)
The following chart shows the market 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 Analyst: Bill Fisher
I can remember, one pretty spring afternoon when I was about 12, walking down the street and suddenly becoming aware that a bee had flown up one of my pants legs.
Its an impossible situation. You cant exactly usher a honeybee to the door when there is no door. And a 12-year-old isnt likely to throw off his pants on a city street, nor could he do so, probably, without causing the bee to sting himas was my own experience.
The current impasse over raising the nations debt ceiling and, in general, making any positive moves in Congress, has brought this moment to mind repeatedly. Weve all got a bee buzzing angrily in our clothing and were likely to continue getting stung. After all, the opposing forces in this tragicomedy are simply and utterly opposed to one anothers wishes and beliefs. All the constant talk of whether anyone will compromise in a bipartisan manner is, in the main, wasted breath. The outcome of this problem will go primarily one way or primarily the other. But I doubt that any clear-thinking man or woman will be pleased with the outcome. Were going to get stung again.
The legislation that is famously responsible for averting our most recent tangle with a fiscal cliff was, as The Economist noted ruefully, a rather empty affair. Rather than facing an imminent debt crisis, as many European countries need to do, [America] needs to deal with the huge long-term gap between tax revenue and spending promises, particularly on health care, while not squeezing the economy too much in the short term. But its politicians now show themselves similarly addicted to kicking the can down the road at the last minute.
It must be said: This is a chance for members of the government to do the right thing, to craft the big agreement based on our economic necessities (instead of on various peoples stubborn belief systems about how government and economies work). This requires remarkable vision and clarity, and a willingness to think of the countrys future more seriously than we think about saving a particular groups backsides or increasing one political partys power.
As it turned out, in the midst of the early January legislative actions, we had three notably good pieces of news for the real estate community. It feels, therefore, as if someone stepped away from the rancorous debate, found a quiet place to think, and worked on definite economic needs.
As a result, some fine print in the fiscal cliff legislation included several regulations that may benefit many homeownersand help their mortgage loan officers serve them more meaningfully. The provision allowing homeowners to avoid taxation of debt forgiveness for their home mortgages The Mortgage Forgiveness Debt Relief Actwas extended for a year. Thus, for example, where a lender agrees to accept $110,000 in a payoff of a borrowers existing mortgage balance, but the borrowers actual payoff amount should be $120,000, the borrower isnt required to pay tax on the $10,000 in debt relief.
Second, private mortgage insurance will again be tax-deductiblesort of a Thank-heavens-for-small-but-meaningful-favors decision that will mean a great deal to mortgage originations.
And third, the Mortgage Interest Deduction remains intactfor the moment, at least. This is an extremely important tax benefit whose demise has long been predicted, since it is such an easy target (for some legislators).
Truth is, these developments speak well of the public and private support these tax benefits have received. They are evidence that calls and letters to our legislators do work, and that the real estate sector commands a good deal of respect when it speaks with one voice.
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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