Daily Mortgage Interest Rate Updates, Trends & Projections: October 2012

Mortgage Rate Update 10-30-12: Trends Projections & Today's Best Rates

The stock market will be closed again today in the wake of Hurricane Sandy (and it's proximity to the actual trading floor). Tentative plans are to re-open trading tomorrow...weather permitting.  In the meantime, mortgage rates remain constant...and remarkably attractive!

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 nearly 2 years at www.JasonGordon.info whenever desired.  Also, make sure to learn about 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.

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 Tuesday 10-30-2012 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 NEUTRAL RESULT to pricing (and will typically warrant a pricing adjustment by most Lenders). Monday's NEUTRAL RESULT netted a change of 0 basis points (bps).

(hint: upward activity is good, downward activity is bad)

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

The following chart shows market activity thus far today:

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

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

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

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

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

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

Market Commentary (Bill Fisher)

 

The Fed’s latest Quantitative Easing Program—commonly known as QE3—has been percolating for a few months now. What has it produced? According to Keith Gumbinger of HSH Associates, “the effort so far has resulted in little more than an eighth-percentage point decline in rates.”
 
With mortgage rates about an eighth of a percent below where they would otherwise be, how is the real estate market doing? These are not hard and fast figures, so this is harder to gauge, but there are reasons to believe that the strength in the real estate market is out of proportion to—bigger than—the apparent benefits to mortgage rates provided by QE3.
 
Notice that the Fed, in its Open Market Committee meeting last week, seems to have made no changes to the QE3 program. The announced intent at the outside of the program was to keep it in force until we had an adequate number of reliable indicators that it had done its work…and the most acceptable of those numbers will be improvements to the number of jobs being created and a credible decline in the unemployment rate.
 
A few economists have ventured the idea that QE3 will be with us for about two years, at which point the need for fiscal stimulus is beaten back by the economic growth that has become very visible by then.
 
This is in line with (as one example of a favorable view of the future) the annual UCLA/Anderson forecast which foresees continued slow growth in the real estate sector over the next six months, then expects it to pick up with perhaps surprising strength. Jonathan Lansner reported in a post in the Orange County Register, looking at the UCLA predictions for growth in construction, that “next year, homebuilding would grow 44 percent and in 2014 jump by an additional 78 percent…highest since 2007.” The construction of residential housing units, in other words, could more than double in the next two years.
 
Thus, we can—tentatively—look for solid economic improvements in general, and further strengthening of the real estate market in particular, over the longer term, though we seem to have to wade through the swamp of slow and uncertain improvement for the immediate future.
 
Still, there is another gift here. UCLA/Anderson anticipates that mortgage rates won’t reach much higher than 4% in the coming year and 4.5% in the year that follows. The continuing record lows for mortgage rates will be a major factor, not all that dependent on QE3, as the real estate market grows firmer.
 
This means that a homeowner who has been waiting in vain for his or her home to regain the value that was lost in the past couple of years might consider an alternative. In many of the nation’s stronger real estate markets, home values are expected to keep rising, even as interest rates remain low. This means that someone who sells in today’s market—in which it has become easier to sell—and then buyers at today’s prices could enjoy the benefits of a growing appreciation rate in the early years of homeownership.
 
We’re not talking about a real estate boom here, though many students of the new construction suggest that the demand for new houses is such and the number of units being built is still so low that we could be seeing the start of a home construction “boomlet”. We are talking, therefore, about significant improvements to the real estate market and about a New Homes sector that may grow to become a major player in the near term future of real estate.
 
I feel, oddly, as if I’ve made such predictions before—and not that long ago. It’s a creepy feeling. This market and this economy have created slippery slopes for positive predictions. But this feels—and looks—right.

 

Trusted Industry Advisor

Jason E Gordon, San Diego Residential Mortgage Specialist, www.ApprovingSD.com

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.jasongordon.net or www.ApprovingSD.com or more information.

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

For more information on topics like this, please feel free to visit www.GordonMortgage.com (an educational resource for Borrowers, Real Estate Agents, and Financial Professionals). Educational content provided by:

 

Jason E. Gordon

Sr. Mortgage Loan Officer

CMPS, CDPE, CMHS, CMC, NMLS 259027

 

Gordon Mortgage Group - AmeriFirst Financial Inc.

 

Office: 619-200-8031

Email: jgordon@amerifirst.us

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 Ever heard of a Lender having more "skin in the game" during escrow than a Buyer? Ever wish a Lender would put their money where their mouth is? Learn how the Protect Your Transaction (PYT) program will improve the negotiation leverage for a Buyer, as well as how PYT benefits the Seller & Realtors in this short video.

 

 

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AmeriFirst Financial Inc., 1550 E. McKellips Road, Suite 117, Mesa, AZ 85203 (NMLS #145368) Toll free phone (877) 276-1974. Copyright 2012. All rights reserved. This is not an offer to enter into an agreement. Not all customers will qualify. Information, rates, and programs are subject to change without prior notice. All products are subject to credit and property approval. Not all products are available in all states or for all loan amounts. Other restrictions and limitations may apply. AmeriFirst Financial is required to disclose the following licensing information. Please click here for licensing information. 

 

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Comment balloon 1 commentJason E. Gordon • October 30 2012 07:58AM
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