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Mortgage Rate Update 9-22-2015: Trends & Projections

By Jason E. Gordon

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

September 22, 2015 02:18 AM

Stocks are starting the day sharply lower, reacting to news showing a negative outlook on Chinese Banks.

Compared to Monday's closing, the market has opened with a 0.125 IMPROVEMENT to the Points/Credits associated with any given interest rate option.

This daily mortgage interest rate report is designed to provide Borrowers & Real Estate Professionals 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!

San Diego Mortgage Rates - Jason Gordon - www.JasonGordonMortgage.com

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

The following information is current as of Tuesday 9-22-2015 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 WORSENING to pricing. Friday's WORSENING netted a change of 19 basis points (bps).

(Note: Upward activity on these charts is GOOD, downward activity is BAD)

Jason Gordon Mortgage - San Diego - www.GordonMortgage.com

The following chart summarizes todays market activity:

Jason Gordon Mortgage - San Diego - www.GordonMortgage.com

The following chart shows market activity over the past 10 days (hint: green is good, red is bad)

Jason Gordon Mortgage - San Diego - www.GordonMortgage.com

The following chart shows market activity over the past 1 month:

Jason Gordon Mortgage - San Diego - www.GordonMortgage.com

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 Trenerry)

Market Update

FNMA

Cpn 2.5 Chg 0.1875 Bid 97.00000

Cpn 3.0 Chg 0.2500 Bid 100.82813

Cpn 3.5 Chg 0.1719 Bid 103.95313

Cpn 4.0 Chg 0.1250 Bid 106.48438

FNMA Cpn 3.0 Forward Delivery over current Month pricing

1 Month Chg 0.0000 Bid 100.61328 Spread 0.21484

2 Months Chg -0.0117 Bid 100.41016 Spread 0.20313

Treasury

UST 5 YR Chg 0.2344 Bid 99.68750 Yield 1.4420

UST 10 YR Chg 0.4688 Bid 98.70313 Yield 2.1460

UST 30 YR Chg 1.1094 Bid 98.34375 Yield 2.9590

Currency

Euro Bid 1.1246 Chg -0.0027

Pound Bid 1.5427 Chg -0.0079

Yen Bid 119.81 Chg -0.720

Light Crude

Last 45.34

Key Economic Data:

Redbook

MM: Actual -1.4%, Last -1.2%.

YY: Actual 0.9%, Last 1.7%.

Monthly Home Price for Jul

MM: Actual 0.6%, Last 0.2%.

YY: Actual 5.8%, Last 5.6%.

Index: Actual 224.5, Last 223.4.

7:00: Richmond Fed for Sep

Comp Index: Last 0.

Services Index: Last 30.

Mfg Shipments: Last -4.

Advice:

Treasuries advanced after a U.S. bond-market gauge of inflation expectations dropped to the lowest level in six years and a decline in stocks and commodity prices boosted demand for haven assets. Slowing inflation is helping cap Treasury yields as the

Federal Reserve moves toward raising interest rates. Atlanta Fed President Dennis Lockhart said on Monday hes confident the central bank will carry out an increase this year. European shares retreated with U.S. equity-index futures, underpinning

demand for government bonds. Two-year notes were little changed before the Treasury sells $26 billion of securities due in September 2017 later on Tuesday. The Fed is clearly mindful of global disinflation pressures eident from lower commodity prices, said Nick Stamenkovic, a fixed-income strategist at broker RIA Capital Markets Ltd. in Edinburgh. Global factors are keeping inflation and yields low in the U.S. despite a tighter labor markets. Waning risk appetite is also providing a boost for Treasuries.

The benchmark 10-year yield dropped three basis points, or 0.03 percentage point, to 2.17 percent as of 7:30 a.m. in New York, according to Bloomberg Bond Trader data. The 2 percent note due August 2025 rose 10/32, or $3.13 per $1,000 face

amount, to 98 1/2. The yield climbed seven basis points on Monday.

My position on MBS:

Short term Changes to Neutral.

Long term Stays Short.

Long = I anticipate pricing to improve which leads to lower Rates.

Neutral = Market should stay close to open plus or minimums 25bps.

Short = I anticipate pricing to weaken which leads to higher Rates.

Short term = 1 - 2 days out

Long term = 30+ days out

Market Commentary (Dan Rawitch)

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

The bond market is showing strength this morning. The positive movement is caused by the slamming of the equity markets, which are down heavily due to news out of China and India. The Chinese development bank is lowering their forecast and signaling further slowing in that Region. India is also showing signs of weakening. Is this enough to get us out of this trading range... I dont know. I hate saying I dont know, because it does not help you. What I can tell you....again, is that breakouts are the exception and you should not assume this will be one. This means the safe bet is to lock. If we fail to break out again, we will most likely turn down sharply and test the bottom.

Trusted Industry Advisor

Jason Gordon Mortgage - www.GordonMortgage.com

The above information was compiled and distributed by San Diego Residential Mortgage Specialist, Jason 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) Certified Mortgage Coach (CMC), and Certified Military Housing Specialist (CMHS), 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.GordonMortgage.com or www.CrossApproval.com or more information.

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