The market has opened today with slight volatility due to the fact that Existing Hme Sales came in slightly more favorable than expected.
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 Monday 7-29-2013 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 Friday with a WORSENING to pricing. Friday'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 Trennery)
FNMA 30-Year:
2.5 Coupon: Open 92.2031 Change -0.2813
3.0 Coupon: Open 96.8281 Change -0.1875
3.5 Coupon: Open 100.7500 Change -0.1250
4.0 Coupon: Open 103.7656 Change -0.0938
Treasuries:
5 Year: Open 99.9766 Change -0.0469 Yield 1.3800
10 Year: Open 92.8594 Change -0.1250 Yield 2.5800
30 Year: Open 86.0781 Change -0.3570 Yield 3.6450
Key Economic Data
EUR/USD: Open 1.3262 Change -0.0016
GBP/USD: Open 1.5361 Change -0.0018
USD/JPY: Open 97.850 Change -0.400
Oil: Open 105.17
Key Economic Data:
Midwest manufacturing for Jun: Actual 96.0, Last 95.8, revised 95.6.
7:00: Pending home sales for Jun: Last 112.3.
7:30: Dallas Fed mfg bus index for Jul: Last 6.50.
Advice:
Unless we get a big surprise from Pending homes sales coming out shortly, I expect the market to stay in a close trading range.
My position on MBS changes to Neutral.
Market Commentary (Dan Rawitch)
Existing Home Sales came in a bit better than expected, but they were well worse than last months number. Just a hint of what tapering talk has brought to us. The technicals look good. We need some momentum to push above 101, and that in turn should carry us back up to test the highs of few days ago. I am still bullish...I know why bonds will get better, but I dont always know when.
Market Commentary (Bill Fisher)
One day, the recent day when New Home sales for June were reported, for example, we get further indications of the real estate market's strength from which investors of all stripes extrapolate a sense of vibrant growth for the entire economy. This pleasant state of affairs lasts, oh, maybe a couple of days, or minutes, and soon the dour economic voices are once again worrying about a slowing economic recovery. This morning, for example, The Wall Street Journal's first page What's News section tells us: Only about half the firms in the S&P 500 have reported second-quarter earnings, but the results are raising concerns that profit growth could stall unless economic expansion accelerates.
The article to which this small header refers tells us that retailers have been, at least, until recently, increasing their profits by cutting costs and squeezing suppliers, noting that this can only go on for a short period of time. What we need is a continuing recovery that is credible and strong.
So the world turns to the American economy the way the nation once turned to Joe Dimaggio, hoping it will hit a few out of the park and create a winning team. And all we seem to have is the real estate sector, slugging away, reporting great sales, especially among New Homes, whose builders currently hold a lot of power because they can build just enough homes to keep demand high.
We cannot help but wonder, though, at the assumptions that seem to keep investors waiting up nights, waiting expectantly for better economic data in the mainstream economy. While low mortgage rates, attractive home prices, increased flexibility among lenders, and a good deal of pent-up demand among potential buyers are all motivating more sales than in the recent past, there are fewer reasons to get excited about other sectors of the economy.
Let's amend that, because rising mortgage rates seem to be kicking dents into existing home sales. The number of home sales contracts in June edged down 0.4% from total contracts in May. This, indeed, may provide us with a very meaningful indicator for the coming few months, because even as small a decline as 0.4% suggests that higher interest rates may be having a negative effect on real estate sales that is slightly weightier than all the forces making a home purchase attractive.
And there is something else weighing on the minds of some analysts. We hear and read a great deal about the QE3 failing in its mission to keep the recovery percolating along. Perhaps this misses the point. Perhaps it is those who are willing to pretend away (rather than finally doing something about) the Sequester, the coming debate over the nation's debt ceiling, and the need to stop investing $85 billion a month in QE3.
With these problems hanging over the world economy like knives, just how certain can we be of an enduring recovery, even as the real estate sector continues to give us good numbers? And without a sense of certainty, even if it is slightly flawed, how can we possibly expect investors to put their money on future growth? Even in real estate?
Rome burned as Nero fiddled. The economy keeps giving us little reminders that it can do the same.
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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