Mortgage Rate Update 10-6-2015: Trends & Projections

Mortgage and Lending with AmeriFirst Financial Inc, San Diego, CA NMLS 259027

October 06, 2015 03:08 AM

The August Trade Deficit increased to $48.3 Billion this morning, which came close to expectations. No more economic data will be released today.

Compared to Monday's closing, the market has opened with a 0.125 WORSENING 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 10-6-2015 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. Monday's WORSENING netted a change of 6 basis points (bps).

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

Gordon Mortgage Group San Diego - www.GordonMortgage.com

The following chart summarizes todays market activity:

Gordon Mortgage Group San Diego - www.GordonMortgage.com

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

Gordon Mortgage Group San Diego - www.GordonMortgage.com

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

Gordon Mortgage Group 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 scenario involving a 740+ credit score, 25% down payment, owner occupied, single family residence, with impound account, with a loan amount up to $417,000 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 0.0781 Bid 98.26563

Cpn 3.0 Chg -0.0313 Bid 101.50000

Cpn 3.5 Chg -0.0469 Bid 104.40625

Cpn 4.0 Chg -0.0469 Bid 106.68750

FNMA Cpn 3.0 Forward Delivery over current Month pricing

1 Month Chg 0.0000 Bid 101.27734 Spread 0.20703

2 Months Chg -0.0078 Bid 101.07422 Spread 0.20313

Treasury

UST 5 YR Chg -0.0391 Bid 100.11719 Yield 1.3510

UST 10 YR Chg -0.1094 Bid 99.37500 Yield 2.0700

UST 30 YR Chg -0.2969 Bid 99.21875 Yield 2.9140

Currency

Euro Bid 1.1215 Chg 0.0029

Pound Bid 1.5179 Chg 0.0035

Yen Bid 120.42 Chg -0.02

Light Crude

Last 46.55

Key Economic Data:

International Trade for Aug: Actual -48.33b, Consensus -47.4b, Last -41.9b.

Redbook

MM: Actual -1.6%, Last -1.5%.

YY: Actual 0.7%, Last 0.9%.

Advice:

Goldman Sachs Group Inc. says theres a chance the Federal Reserve will delay its planned interest-rate increase well into 2016, or even later. Treasuries pared a selloff from Monday, when 10-year yields rose the most in two weeks. While a December liftoff is still. Goldman Sachss central forecast, a slowdown in output and employment may justify the Fed keeping the near-zero rate policy for much longer, well into 2016 or potentially even beyond, Jan Hatzius, the banks New York-based chief economist, wrote in a note to clients. Futures traders have been trimming bets the Fed will boost rates this year even as officials including Chair Janet Yellen and William C. Dudley have said they expect to act in 2015. Kansas City Fed President Esther George and San Francisco Fed President John Williams are scheduled to speak Tuesday. The probability the central bank will increase rates this year has dropped to 36 percent, from 60 percent odds at the end of August, according to futures data compiled by Bloomberg. The calculations are based on the assumption that the effective fed funds rate will average 0.375 percent after liftoff, versus the current target range of zero to 0.25 percent. The chance of a move by the next meeting on Oct. 27-28 has declined to just 8 percentfollowing a monthly jobs report last week that showed U.S. employers added fewer workers than economists forecast and wage growth stalled. Benchmark 10-year note yields fell two basis points, or 0.02 percentage point, to 2.04 percent as of 7:25 a.m. New York time, according to Bloomberg Bond Trader data. The 2 percent security due in August 2025 rose 5/32, or $1.56 per $1,000 face amount, to 99 21/32. The yield ended the third quarter at 2.04 percent. At the

end of last year, Goldman Sachs forecast the yield to be at 2.85 percent at the end of September versus the median estimate of 2.90 percent, according to data compiled by Bloomberg.

My position on MBS:

Short term Stays Neutral.

Long term Stays Neutral.

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

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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