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Mortgage Rate Update 7-16-13: Trends Projections & Today's Best Rates

By Jason E. Gordon

Mortgage and Lending with CMG Mortgage, San Diego, CA NMLS 259027

July 16, 2013 03:53 AM

Today's economic data (CPI, Core CPI, and Industrial Production) came in very close to expectations and had little impact on Mortgage Backed Security (MBS) pricing. Pricing opened today improved on average 0.125 - 0.250 (to points/credits) over yesterday's close.

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!

Jason E. Gordon - Mortgage Rate Update - www.jasongordon.net

The Mortgage Street Smarts of where mortgage interest rates are going (and why):

The following information is current as of Tuesday 7-16-2013 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 37 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.

Today's Best Mortgage Rates - Jason E Gordon - www.JasonGordon.info

Market Commentary (Neil Trennery)

FNMA 30-Year:

2.5 Coupon: Open 92.5156 Change 0.1094

3.0 Coupon: Open 97.0625 Change 0.1094

3.5 Coupon: Open 100.7188 Change 0.0625

4.0 Coupon: Open 103.6719 Change 0.0625

Treasuries:

5 Year: Open 99.9922 Change 0.0156 Yield 1.3780

10 Year: Open 93.1563 Change 0.0156 Yield 2.5410

30 Year: Open 86.8438 Change -0.0469 Yield 3.5970

Key Economic Data

EUR/USD: Open 1.3105 Change 0.0041

GBP/USD: Open 1.5074 Change -0.0026

USD/JPY: Open 99.540 Change -0.310

Oil: Open 106.89

Key Economic Data:

ICSC chain stores

Week-on-week: Actual -1.1%, Last 3.0%.

Year-on-year: Actual 1.7%, Last 2.9%.

CPI for Jun

Month-onmonth sa: Actual 0.5%, Consensus 0.3%, Last 0.1%.

Year-on-year nsa: Actual 1.8%, Consensus 1.7%, Last 1.4%.

Core month-on-month sa: Actual 0.2%, Consensus 0.2%, Last 0.2%.

Core year-on-year nsa: Actual 1.6%, Consensus 1.6%, Last 1.7%.

Index psa: Actual 233.50, Consensus 233.46, Last 232.95.

Core index: Actual 233.64, Last 233.27.

Real weekly earnings: Actual -0.1%, Consensus 0.2%, Last -0.1%.

Redbook

Month-on-month: Actual 0.8%, Last -0.3%.

Year-on-year: Actual 3.0%, Last 3.6%.

Foreign buying of T-bond for May: Actual 11.3b, Last -54.5b, Revised -38.3b.

Overall net capital flow for May: Actual 56.4b, Last 12.7b, Revised 28.3b.

Industrial output for Jun: Actual 0.3%, Consensus 0.2%, Last 0.0%.

Capacity utilization for Jun: Actual 77.8%, Consensus 77.7%, Last 77.6%.

Manufacturing output: Actual 0.3%, Consensus 0.1%, Last 0.1%.

7:00: NAHB housing market index for Jul: Consensus 52, Last 52.

Advice:

Treasuries erased a gain after the cost of living in the U.S. rose in June by the most in four months as gasoline prices increased, a sign inflation is advancing toward the Federal Reserves goal.

My position on MBS stays Long.

Market Commentary (Dan Rawitch)

http://www.ratewatch.com/ratewatchnow.html

Bonds for holding tough in spite of a flurry of BOND unfriendly economic news. Crossing 101 is crucial and I believe, if we cross with some velocity and with some fundamental basis...we will see a large buying spree. THe goal here is flush out all the knuckleheads that bailed out and shorted on July 5. As bonds move from weak hands to stronger hands, could things will happen. I still see that coming.

BTW- Greece does not have the money for their next payment, nor have they met the terms required to recieve their next traunch of capital. I believe the ECB and company will give them the money anyway, because the altnerative will spark VERY BAD things accross Europe.

Just be careful...this market is still mean, ugly and volitile!

Trusted Industry Advisor

San Diego Residential Mortgage Specialist Jason E Gordon

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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