Huge losses from yesterday morning slightly corrected before the end of the day. Unfortunately, we are amidst another rough morning (with the market currently down 22 basis points). Today is a light day for economic reports.
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 Wednesday 9-4-2013 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 Tuesday with a WORSENING to pricing. Tuesday'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.
Market Commentary (Bill Fisher)
Here are three of the many messages probably conveyed by the downward slide for new home sales over a week ago. But first, a little back-story.
I have held for months to the idea that the sustainable real estate recovery, the one that would take sales back into the stratosphere, would show up first in the new homes sector. Builders, after all, had been decimated by the recession, many of them leaving the business while others waited nervously on the sidelines. Inventories were minimal, and the need for new construction was (and is) obvious. Builders, for once, were in a good position to compete with the existing home market and could exert some control over how many new homes were for sale and, working with in-house lenders, provide the buyer-friendly financing that was evading the existing home market.
So, I sat down with a smile on my face and a big bag of popcorn at the ready, watching for large increases in new home sales volume. And, for a time, the new home market came through. Last month, however, the rug was pulled from under my popcorn.
The number of homes that sold in July, which (annualized) had climbed to (a revised) 455,000 in June plunged to 394,000. And we learned this shortly after the announcement of hike from 56 to 59 in the NAHB Home Market Index, based on a monthly survey of builder optimism levels. A level as high as 59 is rarely reached unless we're in the midst of a boom.
The first thing that comes to mind is that the number of newly-constructed homes that sell each month is computed by the Census Bureau and it is highly subject to revision. I don't know why, really. The number of new homes going into contract is not the most important of the Census Bureau's concerns and, more pertinent, the numbers are probably difficult to gather.
In any case, new home sales data is notoriously volatile. It could even be that the number of homes selling in July will be revised higher, to a level that makes me more comfortable chomping on my popcorn. That idea, however, was made dubious by the fact that April and May's sales were revised in a downward direction, by a total of 62,000.
Okay, the second thing that comes to mind is that the Census Bureau's reported new home sales gives us the number of new home going into purchase contract, not the number of homes going through closings. It's very like the Pending Home Sales Index in this respect. We're focusing on the number of contracts that were written up and signed.
Our attention should be grabbed, therefore, by the fact that the most recent Pending Home Sales Index declined. The July index was down 1.3%, not a huge amount, but certainly not a very positive event for those of us watching for ever-greater improvement in real estate sales. The index suggests that this month's existing home sales are unlikely to climb. And here we are, once again, in a market that is moving more slowly than we thought it was.
And that should be the third thing coming to mind. Try as it might, this marketplace may break into hot flames here and there, but overall, it still isn't capable of burning brightly without, for instance, the support of the Federal Rerserve's QE3 program.
In other words, we're still in a slow-as-we-go market, grateful to be going, worried and confused by the slowness.
There are other questions to puzzle out. How great is the pent-up demand, for example, that we (I, at least) though would propel the market into a strong drive to higher ground? Is there, in fact, any reason to listen to the worries of those who believe the real estate markets are likely to slow further this winter? And how, faced with these questions, do we organize our businesses, investments and marketing in the coming months. We'll keep looking for answers that satisfy our curiosities.
Market Commentary (Dan Rawitch)
Market is under some light selling pressure this morning. The only news thus far today was trade deficit and Mortgage applications. Niether had an effect on the market...this is technical and most likely will continue until we get a glimpse of the beige book later in the day.
Bigger news later this week. Stay cautious...there is little to no logic in these markets right now!
Here is today's video:
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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