My what a beautiful sight it is to see so much "green" on today's chart! In early market trading, we are currently 44 basis points in the right direction...fingers crossed that this trend will continue!
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 Tuesday 6-11-2013 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 Monday with a WORSENING to pricing. Monday's WORSENING netted a change of 3 basis points (bps).
(hint: upward activity is good, downward activity is bad)
The following chart shows the 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 Commentary (Neil Trenerry)
FNMA 30-Year:
2.5 Coupon: Open 95.1719 Change -0.4219
3.0 Coupon: Open 99.5625 Change -0.4219
3.5 Coupon: Open 102.9375 Change -0.2813
Treasuries:
5 Year: Open 99.2031 Change -0.1953 Yield 1.1660
10 Year: Open 95.6094 Change -0.2813 Yield 2.2460
30 Year: Open 90.5156 Change -0.1719 Yield 3.3800
Key Economic Data
EUR/USD: Open 1.3250 Change -0.0008
GBP/USD: Open 1.5552 Change -0.0019
USD/JPY: Open 96.960 Change -1.770
Oil: Open 94.25
Key Economic Data:
NFIB business optimism for May: Actual 94.4, Last 92.10.
ICSC chain stores
Week-on-week: Actual -2.7%, Last 1.9%.
Year-on-year: Actual 2.2%, Last 4.3%.
Redbook
Month-on-month: Actual -0.5%, Last 0.6%.
Year-on-year: Actual 2.8%, Last 2.9%.
7:00: Wholesale for May
Inventories: Consensus 0.2%, Last 0.4%.
Sales: Consensus 0.0%, Last -1.3%.
Advice:
With no help from the news, I dont expect to see any change in the direction of the market.
My position on MBS changes to Short.
(Seller FNMA 3.00cpn July @ 99*9/32)
Market Commentary (Dan Rawitch)
As I have mentioned over the last several trading sessions...we have yet to find bottom. We had a few attempts but in the end, each battleground and line of defense has been won by the bears trampling over the poor tired bulls. I think at this point, we need to buckle in and prepare for a test of actual 2012 bottom which was 98.38. THere is a chance we will hold at 99.00....but it is best to prep your borrowers and yourselves for the downside. "hope for the best and prepare for the worst".
I remain feverously bullish over the mid and long term. Do you all remember a few years ago when the Fed ended QE1? He gave a definitive date for ending it and almost everyone said, it was the end of bonds. Most of the other RateWatch competitors..also called the end for Bonds. I stood alone in my strong opinion that it was not the end and in fact i said, "we are just getting started". All of those reasons I stated a few years ago, still hold true today:
1. We have no Jobs
2. We have no recovery and our GDP growth rate is pathetic
3. We are entering a decade very much like Japan's last decade. A decade of deflation and deleveraging.
4. The baby boomers are moving from the age of "Buyers to Dyers". Yes we are getting older and we don't care about big houses.
5. THere is 5-10 year period of demographic weakness coming as the boomers surpass their peak spending years and the Shadow Boomers are not quite of age.
6. NOTHING IS EVER THAT SIMPLE. When the FED does officially announce the tapering off of Stimulus, the market will rally. Why, because markets will NEVER do the obvious or the expected. If anything market related was ever black and white of obvious...the entire planet would be wealthy. You MUST expect the unexpected when trading any market. It is a fools game to assume the obvious...which makes the obvious and impossible equation to solve.
7. Think of Ground Hog day...The fed pulls out, Bonds tank, economy goes into an immediate tail spin, Fed JUMPS back into stimulate. This or some closely related scenario is our fate, while wait for the real economic rebirth, which can happen only when the Shadow Boomers come of age. I personally believe this to be an economic reality that we cannot avoid.
Things will remain fake for so long...we will forget what real looks like. In the end... Provided we don't run out of drugs....I think we can keep the ZOMBIE alive. Lets just hope that a ZOMBIE economy does not eat our future generations!
Of course in the end...I am fundamentally an optimist and I believe equilibrium will win and after some pain in the future...the markets will right themselves.
Hang in there! Keep the Faith. Sell what you have...Do not talk to borrowers about what rate you had last month and do not talk about what might happen next month. Sell what you have today..it is the only thing that is real.
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.
Click here for daily mortgage interest rate updates and projections for San Diego's best mortgage rates
