After some initial concern over specific comments at yesterday's FED Meeting, we had a slight market rally late in the day to finish with a 12 basis point improvement.
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 Thursday 2-21-2013 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 Wednesday with an IMPROVEMENT to pricing (and will typically warrant a pricing adjustment by most Lenders). Wednesday's IMPROVEMENT netted a change of 12 basis points (bps).
(hint: upward activity is good, downward activity is bad)
The following chart shows a summary of today's activity:
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 99.1406 Change 0.2344
3.0 Coupon: Open 102.9688 Change 0.1875
3.5 Coupon: Open 105.3125 Change 0.1250
Treasuries:
5 Year: Open 100.2031 Change 0.1328 Yield 0.8330
10 Year: Open 100.2188 Change 0.3125 Yield 1.9760
30 Year: Open 99.1719 Change 0.6250 Yield 3.1680
Key Economic Data
EUR/USD: Open 1.3196 Change -0.0081
GBP/USD: Open 1.5254 Change 0.0019
USD/JPY: Open 93.190 Change -0.350
Oil: Open 93.24
Key Economic Data:
CPI for Jan
Month-on-month SA: Actual 0.0%, Consensus 0.1%, Last 0.0%.
Year-on-year NSA: Actual 1.6%, Consensus 1.6%, Last 1.7%.
Core month-on-month SA: Actual 0.3%, Consensus 0.2%, Last 0.1%.
Core year-on-year NSA: Actual 1.9%, Consensus 1.8%, Last 1.9%.
Index NSA: Actual 230.28, Consensus 230.32, Last 229.60.
Core Index SA: Actual 232.11, Last 231.53.
Real weekly earnings: Actual 0.1%, Last 0.6%.
Unemployment
Initial jobless claims: Actual 362k, Consensus 355k, Last 341k.
Jobless claims 4-week avg: Actual 360.75k, Last 352.50k.
Continued jobless claims: Actual 3.148m, Consensus 3.170m, Last 3.114m.
Markit Mfg PMII Prelim: Actual 55.2, Consensus 55.5, Last 55.8.
7:00: Existing home sales for Jan: Consensus 4.90m, Last 4.94m.
7:00: Leading index chg for Jan: Consensus 0.3%, Last 0.5%.
7:00: Philly Fed business index for Feb: Consensus 1.0, Last -5.8.
8:30: Cleveland Fed CPI for Jan: Last 0.2%
15:00: SEMI book/bill ratio for Jan: Last 0.92.
Advice:
Applications for unemployment benefits in the U.S. rose for the first time in three weeks, returning to levels seen prior to the holiday period and indicating little change in the pace of firings. Jobless claims increased by 20,000 to 362,000 in the week ended Feb.16, the Labor Department reported today in Washington. The median forecast of 48 economists surveyed by Bloomberg called for an increase to 355,000. The number of applications in three states and the District of Columbia was estimated because of the holiday-shortened week, a Labor Department spokesman said as the data was released. Companies are maintaining their staffing levels even amid concern that rising gasoline prices and a January tax increase will damp consumer spending. Looming cuts in government spending also threaten to slow growth, a sign that hiring may be limited in coming months. Businesses just seem to be sitting tight with regard to layoffs, which is reason for optimism, Ryan Sweet, a senior economist at Moodys Analytics Inc. in West Chester, Pennsylvania, said before the report. If we get through these hurdles over the next couple months the job market should begin to improve more noticeably, said Sweet, who was the best forecaster of jobless claims over the past two years ended last week, according to data compiled by Bloomberg. Stock-index futures remained lower after the report. The contract on the Standard & Poors 500 Index maturing in March fell 0.2% to 1,504.30 at 8:38 a.m. in New York.
My position on MBS stays Long.
Market Commentary (Dan Rawitch):
Here is the link to today's video:
Lots of news..most of it helpful for bonds. Having said that...I would have expected more bearish reaction to CPI. I am not so sure the market does not slap itself later today and realize this needs a closer look. So, yes, I remain nervous at these levels and I still see some downside risk. You can ignore my fear if we close about 103.10. You should heed my fear if you see a correction this afternoon
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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