Although the market is closed today in observance of Good Friday, a market summary is listed below.
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. To make things easier, I have also posted a quick report on How To Read The Charts Below.
Also, make sure to learn THE TOP 10 THINGS TO KNOW ABOUT MORTGAGE RATES (to help understand the relationship between rates & fees/credits) along with 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). Remember, we all make better decisions in life when we have the actual facts to analyze!
The Mortgage Street Smarts of where mortgage interest rates are going (and why):
The following information is current as of Friday 3-29-2013 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. Thursday'sNEUTRAL RESULT netted a change of 0 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 (Bill Fisher)
U.S. housing recoveries almost always have been ignited by rising demand from families and individuals looking for a place to live. "This recovery is different," notes Nick Timiraos, the estimable real estate/economic reporter for The Wall Street Journal.
"Investors including some big Wall Street playersare leading the way," say industry executives and analysts. "Today's investors are mostly buying with the intention of holding on to the homes and renting them out."
So consider with me for a moment. The usual rising tide of renters and owners who, pushed along by pent-up demand, start buying homes and bringing recovery to the real estate market and, very often, contributing to the recovery of the overall economy is not exactly absent today, but the key players have been investors.
Seeing a rather standard sort of real estate investing as one of the few ways of pulling in fairly certain (and large) profits, investors have found what seem to be likely candidates (like Phoenix) and have bought up distressed properties in remarkable quantities. And what is truly "different this time" as the frequently-abused expression goes, is that the investors are very often large institutions that have raised millions of dollars to spend on a huge portfolio of single-family homes, often in all-cash transactions.
What are some of the questions and ramifications here?
*Single-family rental homes are hard to manage. They arent like an apartment complex with four or five unit designs. They vary more, are spread out further, are generally heterogeneous, even if they are in the same neighborhood (which they usually arent). New computer programs are being developed to follow the dwellings and their renters; more hands-on, face-to-face managerial work is often involved; and simple errors can compound into huge problems and expenses. Will these investors want to stay with such complex holdings?
*And if the firm that owns a few thousand homes in one area runs into financial problems and needs to sell off some of its units, what will that do to the local market for single-family residences?
*And at a very simple level, will those who manage hundreds of SFRs prove enlightened enough to put money and effort into helping to keep the neighborhoods in good shape? Clearly, doing so will pay off well whenever the investors choose to sell some of their properties, but important upkeep and upgrades could seem less important if the economy turns sour.
I'm not seeing any analyses that consider these and related questions. Here's another, therefore.
If this recovery has resulted primarily from investor activity, often that of institutional investors, what can we reasonably expect the outcome to be? Are we moving toward a normal real estate market again? Or are there further changes ahead? Have we given the keys to the house to a very different sort of owner, different even from the mom-and-pop who own and manage one or two single-family rentals? Will we need a new set of regulations for the operation of such rental units by large investor ownerships?
Remember that we have never before seen publicly-owned entities like partnerships and REITs involved in large-scale ownership of rental SFRs...so we dont really know what problems and opportunities are being created here. Yes, we'll be watching closely. But I can't help but feel that we'll need to be proactive, insofar as possible, rather than simply reactive to the problems and opportunities that arise.
One last point: A large number of these dwellings are owned by the large investment entities with no mortgage encumbrances. What effect will this have on lending practices in the future?
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. All Market Commentary is provided via The Mortgage Coach and/or their RateWatch technology software.
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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