All the information about Mortgage Rates you will need all wrapped up into one convenient daily report. On the heals of Friday's debacle, we had a nice bounce back day yesterday with a 50 basis point improvement. We begin Tuesday in positive territory, but remain cautious on locking short term. Pricing is expected to improve by roughly 0.125 - 0.250 to points/credits with most Lenders as the market opens today.
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 over 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...share this report with those whom you care about!
The Mortgage Street Smarts of where mortgage interest rates are going (and why):
The following information is current as of Tuesday 7-9-2013 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 SIGNIFICANT IMPROVEMENT to pricing. Monday's SIGNIFICANT IMPROVEMENT netted a change of 50 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 Trennery)
2.5 Coupon: Open 91.3750 Change 0.1563
3.0 Coupon: Open 96.0625 Change 0.0781
3.5 Coupon: Open 100.0469 Change 0.1094
4.0 Coupon: Open 103.0781 Change 0.0469
5 Year: Open 99.4297 Change 0.0469 Yield 1.4960
10 Year: Open 92.3438 Change 0.0000 Yield 2.6380
30 Year: Open 86.1719 Change -0.0156 Yield 3.6370
Key Economic Data
EUR/USD: Open 1.2858 Change -0.0011
GBP/USD: Open 1.4871 Change -0.0077
USD/JPY: Open 101.140 Change 0.210
Oil: Open 102.70
Key Economic Data:
NFIB business optimism for Jun: Actual 93.50, Last 94.40.
ICSC chain stores
Week-on-week: Actual 3.0%, Last 0.6%,
Year-on-year: Actual 2.9%, Last 1.9%.
Month-on-month: Last -0.5%.
Year-on-year: Last 2.9%.
Employment trends for Jun: Last 111.8.
With little help from news, not sure which way this market is going to swing.
My position on MBS stays Neutral.
Market Commentary (Dan Rawitch)
Nice bump again this morning. We have no news, so this is good old fashioned bottom fishing for buyers. I continue to believe that we go back up to 101 and take out the silly gap that was caussed by the sissy amatuers on Friday. If we can close above 101 and above the current trendline, we will be positioned for a run back to 102.
Let's see what the Fed Minutes have to say tomorrow. Again, I remind you to be careful. THis market is about as weird and fragile as it could be
Market Commentary (Bill Fisher)
Having shot up to 4.46% the week before last, the Freddie Mac average 30-year fixed-rate eased back down to 4.29% this past week. Getting a purchase money mortgage, therefore, is like negotiating a walk home amidst earthquake aftershocks. The way has been rather treacherous and unpredictable.
What we can see rather clearly, though, is that this is not a turnaround. The real estate market has not fallen into a massive pothole; it is still alive and quite well. Note, for example, that new applications for purchase money mortgages declined by a relatively small 3% from its high position the prior week. If we were in the midst of a market turnaround, applications would be diving into the deep end of the pool at this point.
Applications for refinancing loans were off far more precipitously last week, of course---refinancers are generally seeking, above all, the lowest rate they can find, and they retreat when rates rise. Another 16% decline in the number of applications for refis this past week should not surprise us in the least.
The overall market showed signs of an easing, meanwhile. This was symbolized, in a sense, by the fact that the number of new payroll jobs in June was precisely the same as the revised number in May (195,000), and the unemployment percentage was also the same for May and June (7.6%).
Indeed, looking back at the last two weeks, we may want to say that the credit markets didnt go through the major change that many or most people may have thought they had. Yes, the 30-year fixed rate climbed by about 50 basis points...BUT not on economic fundamentals, which remain relatively unchanged. What moved mortgage rates was a lot of fear and gnashing of teeth over whether Bernanke and the Fed are about to pull the plug on quantitative easing, without which it seems that a vast number of investors are worried the markets will sink under their own weight. With the Feds help, though, there seems to be a tentative confidence that we can all remain high and dry.
Was this an overreaction to the Feds recent announcement about when and how it might stop investing $85 trillion in mortgage-backed bonds? When? The Fed keeps saying, "Soon." But not saying when exactly "soon" will arrive. The point right now is that no one knows. There is no certainty about a dang thingmost particularly about what effects the end of QE3 will have. Were in uncharted territory, mateys.
Nonetheless, if WAS an overreaction.
Without a sense of direction, without know which end is up, we can only guess. And investors dont guess. They discern wisely among various possibilities. Ask them to guess and the best they can do is to turn the markets into unpredictable roller coasters.
Very likely well see our share of turmoil in the coming months, but we find ourselves very glad, as the year reaches its close, that we placed our bets on real estate.
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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