Todays best mortgage rates. What can we expect from mortgage rates next month? All Real Estate Professionals & Consumers are advised to stay informed about interest rates and learn THE TRUTH BEHIND MORTGAGE QUOTES. Whether you're a newbee, market analyst (or somewhere in between), keep yourself informed of where mortgage interest rates are going (and why).
The Mortgage Street Smarts of where mortgage interest rates are going (and why):
The following information is current as of Thursday 9-29-2011 and will help you understand todays 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 an IMPROVEMENT to pricing (and will typically warrant a pricing adjustment by most Lenders). Wednesday's IMPROVEMENT resulted in a change of 25 basis points (bps).
The following chart shows the market activity for today (hint: upward activity is good, downward activity is bad):
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.
Analyst #1 (Neil Trenerry)
FNMA 30-Yr 3.5%
Previous close 102.281
Opened Down 0.125 @ 102.156
Key Economic Data:
UST 2 YR 0.26 Up 0.01
UST 5 YR 0.99 Up 0.06
UST 10 YR 2.01 Up 0.02
UST 30 YR 3.06 Down 0.02
EUR / USD 1.3637 Up 0.0094
USD / JPY 76.7900 Up 0.1815
GBP / USD 1.5638 Down 0.0002
Oil 83.62 Down 0.83
Gold 1,654.60 Up 2.10
Key Economic News:
Three small pieces of positive news: better Q2 GDP growth, jobless claims decline (though questions about special factors) and payrolls likely to be revised up.
Initial jobless claims 391k in week ending Sep 24 vs. median forecast 420k.
Continuing jobless claims 3,729k in week ending Sep 17 vs. median forecast 3,730k.
GDP 1.3% (qoq ar) for Q2 vs. median forecast 1.2%.
1. Initial jobless claims fell to 391k in the week ending September 24, from 428k in the previous week. The Department of Labor (DOL) said that the decline probably reflected technical/calendar-related issues, and specifically a "mistiming" of the seasonal adjustment factors (reported by Bloomberg). These comments suggests the improvement in claims should be partly discounted, and indicate that claims should rebound next week. However, the decline in non-seasonally adjusted terms this year (29k) appears large compared to late-September drops in earlier years (e.g. unadjusted claims fell by 10k in the last week of September last year). We therefore think the decline in claims could contain some fundamental news, and interpret the report as a small positive.
2. The DOL also announced this morning its preliminary estimate for next year's benchmark revision to nonfarm payrolls (normally these estimates are released with the September employment report). Based on data from unemployment insurance records, the DOL now estimates that nonfarm payrolls likely increased by 192k more than previously reported in the year to March 2011. Although a relatively small revision compared to the last few years, the direction of the revision was encouraging.
3. Finally, the Commerce Department revised up its estimate of Q2 GDP growth to 1.3% (quarter-over-quarter, annualized) from 1.0% previously. The revision reflected larger contributions from services consumption, investment and net exports. Growth in final sales-GDP excluding inventories-was revised up to 1.6% from 1.2% previously.
8:45: Philadelphia Fed President Charles Plosser on the economic outlook. Q&A expected.
10:00: Pending home sales (August): Upside risks. The pending home sales index – which tracks signed home sales contracts, and leads the official count of existing home sales by 1-2 months – has been choppy but little changed overall this year. The consensus expects a small setback (-2%) in this month’s report, but we see some upside risks.
Consensus: -2.0%; Last -1.3%.
13:00: Atlanta Fed President Dennis Lockhart gives welcome remarks at Fed “Employment and Education” conference.
With Jobless claims coming in flat, unless pending home sales comes in with a big surprise. I would expect the market to weaken a little.
My position on MBS stays neutral.
Analyst #2 (Dan Rawitch)
Here is the link to our daily video: http://ratewatch.com/ratewatchnow.html
Nice surprises in both GDP and Jobless claims! Although most on Wallstreet will tell you it is the fact that Germany voted to back the EFEF. The real surprise to me is how well MBS prices are holding in light of this good news. I am goosey and have a hard time believing we can hold these levels.
Unless we have a good 7 year auction later today, I would not be surprised if we run down and test 101.60.
Anyway…be careful as the day goes on
Trusted Industry Resource
The above information was compiled and distributed by San Diego Residential Mortgage Specialist, Jason E Gordon. 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.jasonegordon.com or www.ApprovingSD.com or more information.
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