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Mortgage Rate Update 7-25-13: Trends Projections & Today's Best Rates

By Jason E. Gordon

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

July 25, 2013 03:28 AM

Durable Orders were stronger than expected this morning, while Jobless Claims came in very close to the consensus. Mortgage Backed Securities (MBS) opened low and moved lower after the news, but have since returned close to opening levels? There will be a 7 year treasury auction later this morning. Prices are on average 0.250 worse compared to yesterday, depending on rate and product.

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 Thursday 7-25-2013 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 a WORSENING to pricing. Wednesday's WORSENING netted a change of 6 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 Interest Rates - San Diego Residential Mortgage Specialist - Jason E Gordon - www.ApprovingSD.com

Market Commentary (Neil Trennery)

FNMA 30-Year:

2.5 Coupon: Open 91.9688 Change -0.2344

3.0 Coupon: Open 96.4063 Change -0.2813

3.5 Coupon: Open 100.3906 Change -0.2344

4.0 Coupon: Open 103.4375 Change -0.2344

Treasuries:

5 Year: Open 99.7266 Change -0.1289 Yield 1.4300

10 Year: Open 92.5156 Change -0.2969 Yield 2.6200

30 Year: Open 85.5781 Change -0.4844 Yield 3.6760

Key Economic Data

EUR/USD: Open 1.3217 Change 0.0018

GBP/USD: Open 1.5302 Change -0.0012

USD/JPY: Open 99.720 Change -0.520

Oil: Open 104.53

Key Economic Data:

Building permits for Jun: Actual 0.918m, Last 0.911m.

Durable Goods for Jun

Index: Actual 4.2%, Consensus 1.3%, Last 3.7%.

Ex-transpsort: Actual 0.0%, Consensus 0.5%, Last 0.5%.

Ex-defense: Actual 3.0%, Consensus 1.5%, Last 3.5%.

Unemployment

Initial jobless claims: Actual 343k, Consensus 340k, Last 334k.

Jobless claims 4-week avg: Actual 345.25k, Last 356.00k.

Continued jobless claims: Actual 2.997m, Consensus 3.000m, Last 3.114m.

8:00: KC Fed manufacturing: Last -17.

Advice:

10-year yields approached the highest level in a week before a government report that economists said will show orders for U.S. durable goods increased for a third month in June. The U.S. is scheduled to sell $29 billion of seven-year notes today after auctions of two- and five-year debt this week drew lower-than-average demand. New home sales climbed to a five-year high, the Commerce Department said yesterday, bolstering speculation the economy is strong enough for the Federal Reserve to start trimming bond purchases. Thirty-year yields approached the highest in almost two years after U.K. economic growth quickened and German confidence improved. Theres been a signal that the global business cycle may have reached the bottom and the economy is recovering, albeit at different paces in the U.S. and Europe, said Annalisa Piazza, a fixed-income analyst at Newedge Group in London. The U.S. has led the others in terms of growth, and Treasury yields are likely to be on an upward path although we expect some volatility in coming months. The benchmark 10-year yield rose one basis point, or 0.01 percentage point, to 2.60 percent at 6:53 a.m. in New York, according to Bloomberg Bond Trader prices. The 1.75 percent note due in May 2013 fell 3/32, or 94 cents per $1,000 face amount, to 92 22/32. The yield climbed to 2.62 percent yesterday, the highest since July 15. The 30-year yield was at 3.66 percent after rising to 3.72 percent on July 8, the most since August 2011.

My position on MBS stays Long.

Market Commentary (Dan Rawitch)

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

Mixed news but most of it bond friendly in my opinion. I suspect many traders are sitting on their buy or sell orders until they get a glimpse of todays 7 year auction.

THe charts are weak and we have a failed head and shoulder. It will take a great deal to prevent gravity from pulling us down to test 100. I am hoping we can hold Par and start developing a trading range, while we rest up for the next climb

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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