Mortgage Rates Fell Today

Mortgage rates fell today, erasing yesterday's weakness in many cases.  There were no significant events in the morning, but bond markets had already improved overnight in Asia and Europe.  The improvements held throughout the US trading day, allowing lenders to offer improved rate sheets compared to yesterday.  This keeps the most prevalently quoted conforming 30yr fixed rate for ideal scenarios (best-execution) at  4.375% whereas it had been in transit to 4.5% yesterday.

To make matters slightly more optimistic, Janet Yellen--the nominee to replace Bernanke as the head of the Federal Reserve--will have her confirmation hearing tomorrow in front of the Senate Banking Committee.  Her prepared remarks were released late this afternoon  and led to further strength in bond markets.  It was late enough in the day that most lenders didn't adjust rates sheets, though the gains seen in Mortgage-Backed-Securities would have justified it, had they happened earlier in the day.  All other things being equal, this means tomorrow would start out with a bit of an advantage for mortgage rates.  Even if rates simply hold steady, it would go a long way toward rejecting the trend higher that's been in force for the past two weeks.

Housing market still showing a bright side

Housing market still showing a bright side

According to recent reports published by Fannie Mae and Freddie Mac, the economy is slowing heading into the fourth quarter of the year, which raises concerns about the housing recovery. The federal government shutdown, debt ceiling issues and economic uncertainty are targeted as factors that are weighing on consumer confidence. Despite the issues with the broader economy, both reports expect the housing market recovery to continue chugging along.

“On the bright side, these fiscal policy issues appear to have had only minimal effect on the housing market to date, which continues to improve overall,” said Fannie Mae Chief Economist Doug Duncan. “Notably, the rapid appreciation of home prices during the past year has contributed significantly to household net worth gains. Also, the Fed’s continuation of securities purchases will likely keep mortgage rates low, enabling more homeowners to take advantage of refinance opportunities.”

Weekly Mortgage Interest Rate Report  —  November 7, 2013

Tom Drasler Home Mortgage Consultant - NMLS #297791 Direct (714) 478-3153 Send me an email     |   Visit my website HomeQuest Mortgage Corporation 25283 Cabot Road, Suite 108 - Laguna Hills, CA 92653

Data Provided by Freddie Mac's Primary Mortgage Market Survey®  Week ending on 11/07/2013 Interest Rate Fees & Points Margin  30 Year Fixed Rate 4.16 % 0.8 N/A  15 Year Fixed Rate 3.27 % 0.7 N/A  5/1-Year Adjustable Rate 2.96 % 0.5 2.75  1 Year Adjustable Rate 2.61 % 0.5 2.77 For up-to-the-minute local mortgage interest rate information, contact:  Tom Drasler at Direct (714) 478-3153  Week ending on 10/31/2013 Interest Rate Fees & Points Margin  30 Year Fixed Rate 4.10 % 0.7 N/A  15 Year Fixed Rate 3.20 % 0.7 N/A  5/1-Year Adjustable Rate 2.96 % 0.4 2.76  1 Year Adjustable Rate 2.64 % 0.4 2.76 This is not intended as an advertisement of interest rates as defined by Regulation Z, Section 226.24. Data is provided by Freddie Mac's Primary Mortgage Market Survey (PMMS) and is provided for informational purposes only. The financial and other information contained herein speaks only as of the date posted herein. Freddie Mac, and/or the sender of this information, is not responsible for business decisions made based on the reported results of the PMMS. In general, the data presented were calculated from information collected Monday through Wednesday of the same week that the PMMS is released and may not reflect mortgage rates, fees or points currently available. Average fees and points are provided to reflect the total upfront cost of obtaining a mortgage. Borrowers may still pay closing costs which are not included in the survey. Fixed rates up slightly as a result of positive economic data "Fixed mortgage rates rebounded slightly this week on more positive economic data releases. Production in the manufacturing industry expanded for the fifth month in a row in October to the strongest pace since April 2011. Similarly, the non-manufacturing sector grew for the second consecutive month in October and beat the market consensus forecast of a decline. These increases were widespread across the nation, from Chicago to Milwaukee to New York." – Frank Nothaft, vice president and chief economist, Freddie Mac