Home > Blogs > Jason E. Gordon > Mortgage Street Smarts

Mortgage Rate Update 9-5-13: Trends Projections & Today's Best Rates

By Jason E. Gordon

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

September 05, 2013 03:15 AM

Today's early economic data has caused some additional volatility in the Mortgage Backed Security markets, which have moved lower ahead of tomorrow's employment report. Prices are on average 0.500 worse in points/credits than where we closed yesterday.

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 9-5-2013 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 SIGNIFICANT WORSENING to pricing. Wednesday'sSIGNIFICANT WORSENING 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.

Today's Lowest Interest Rates - San Diego Residential Mortgage Specialist - Jason E Gordon - www.ApprovingSD.com

Market Commentary (Neil Trenerry)

FNMA 30-Year:

3.0 Coupon: Open 94.3438 Change -0.2188

3.5 Coupon: Open 98.6250 Change -0.1875

4.0 Coupon: Open 102.2031 Change -0.1719

Treasuries:

5 Year: Open 98.6641 Change 0.1953 Yield 1.7810

10 Year: Open 96.3750 Change -0.2188 Yield 2.9230

30 Year: Open 96.5313 Change -0.4219 Yield 3.8200

Key Economic Data

EUR/USD: Open 1.3148 Change -0.0059

GBP/USD: Open 1.5624 Change 0.0001

USD/JPY: Open 99.780 Change 0.050

Oil: Open 107.73

Key Economic Data:

Challenger layoffs for Aug: Actual 50.462k, Last 37.701k.

ADP national employment: Actual 176.0k, Consensus 180k, Last 200k, Revised 198k.

Unemployment

Initial jobless claims: Actual 323k, Consensus 330k, Last 331k, Revised 332k.

Jobless 4-wk average: 328.50k, Last 331.25k, revised 331.50k.

Continued jobless claims: Actual 2.951m, Consensus 2.980m, Last 2.989m, Revised 2.994m.

Productivity Revised for Q2: Actual 2.3%, Consensus 1.5%, Last 0.9%.

Labor costs Revised for Q2: Actual 0.0%, Consensus 0.8%, Last 1.4%.

7:00: Durable goods for Jul

Index: Last -7.3%.

Ex-def: Last -6.7%.

Factory orders: Consensus -3.3%, Last 1.5%.

7:00: ISM N-mfg for Aug

Business Act: Consensus 57.0, Last 60.4.

PMI: Consensus 55.0, Last 56.0.

Advice:

Fewer Americans than forecast filed applications for unemployment benefits last week, indicating the labor market is improving. Jobless claims declined by 9,000 to 323,000 in the week ended Aug. 31, less than the lowest estimate of economists surveyed by Bloomberg, from a revised 332,000, according to Labor Department data issued today in Washington. Another report showed productivity climbed more than previously estimated in the second quarter. Employers are holding the line on dismissals, setting the

stage for a pickup in hiring to meet any acceleration in demand as the effects of federal budget cuts and higher payroll taxes begin to wane. Growth in employment and rising incomes will help sustain consumer spending, which accounts for about 70 percent of the economy. Businesses are a little more comfortable about future demand so were seeing fewer layoffs, Gennadiy Goldberg, a U.S. strategist at TD Securities Inc. in New York, said before the report. We have an improving labor market. Payrolls will

be growing gradually in the second half. Companies boosted employment by 176,000 workers in August, figures from the Roseland, New Jersey-based ADP Research Institute also showed today. The median forecast of 43 economists surveyed by Bloomberg called for a 184,000 gain. Estimates ranged from increases of 150,000 to 225,000.

My position on MBS changes to Short.

(seller)

Market Commentary (Dan Rawitch)

Good Morning Mortgage Coaches!

Yikes...heavy selling. Somewhat irrational in my opinion. We are now testing the bottom, as I feared we would last Friday. My guess is that we get a big scare as we dip below the bottom and then hopefully a bit of a bounce back before the close. At times the market will tend to find a way back to neutral ahead of a big day like we have tomorrow, which will be the payroll numbers and unemployment. The challenger job cut number was a disaster, with employers planning over 50,000 job cuts in the ooming month. You'd think that would help bonds????

Here is today's video:

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

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.

Click here for daily mortgage interest rate updates and projections for San Diego's best mortgage rates