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Updated Interest Rates

VMG Weekly Rate Tracker – 09/30/2014

 NMLS# 35986    
VMG Weekly Rate Tracker- Your Local Price Leaders (sharing is caring)
DATE:  Tuesday, September 30th, 2014
TIME:  4:30 PM PST
CHANGE THIS WEEK: WORSE (from last Tuesday)
SUGGESTION:  LOCK/BE IN POSITION TO LOCK –  Keep a close eye and get updates from your Loan Consultant (see below for more commentary)
VMG’S FIXED RATE OPTIONAL PRICING  (rates subject to change)
***Below rate optional pricing has NO additional lender-related fees (i.e. processing, underwriting, application, etc.).  Lender credits below result in (negative) lender fees applied toward 3rd party fees or prepaids.  Contact Loan Consultant for personalized quote.
*Rates change daily.  Conforming interest rate samples based off $240,000 loan amount, 75% Loan to Value, 740 or higher FICO score, with impounds on a 30 day rate lock period.  FHA/VA based off 3.5% down payment, but other same variables.  Costs or credits shown pertain to interest rate and do not include any other applicable 3rd party title and escrow charges or prepaid tax and insurance reserves which may or may not apply.  Lock period suggested depends on current loan volume and lending climate at time of loan application and approval.  Other risk-based pricing adjustment may apply.  The displayed annual percentage rates (APRs) include total points and additional prepaid finance charges but do not include other closing costs.   On adjustable-rate loans, rates are subject to increase over the life of the loan.   Learn more about assumptions and APR Information. Loan pricing may only be locked through a home loan consultant to be effective.  Rates will depend in part on your unique credit history and transaction characteristics. Please email or call for updated pricing at anytime as rates and pricing are subject to change. This information does not constitute a loan commitment or approval.
Rate Lock Advisory – Tuesday Sep. 30th 

Tuesday’s bond market has opened down slightly following much weaker than forecasted economic news. The stock markets are flat with the Dow and Nasdaq both just a couple points from yesterday’s closing levels. The bond market is currently down 3/32 (2.49%), which should push this morning’s mortgage rates higher by approximately .125 of a discount point.

Today’s only relevant economic data came late this morning when the Conference Board released this month’s Consumer Confidence Index (CCI) at 10:00 AM ET. It showed a reading of 86.0 that was well short of expectations. Analysts were calling for a reading of 92.0, meaning surveyed consumers were less optimistic about their own financial and employment situations than many had thought. That is good news for bonds because waning confidence usually means consumers are less likely to make a large purchase in the near future, helping to limit economic growth. 

Tomorrow has two reports scheduled for release that are likely to affect mortgage pricing. First up is the ADP Employment report for September at 8:15 AM ET. It has the potential to cause movement in the markets if it shows much stronger or weaker numbers than expected. This report tracks changes in private-sector jobs of ADP’s clients that use them for payroll processing. While it does draw attention, it is my opinion that it is overrated and is not a true reflection of the broader employment picture. It also is not accurate in predicting results of the monthly government report that follows a couple days later. Still, because we have recently seen reaction to the report, we will be watching it. Analysts are expecting it to show that 200,000 new payrolls were added. The lower the number of jobs, the better the news it is for mortgage rates. 

The Institute for Supply Management (ISM) will post their manufacturing index for September at 10:00 AM ET tomorrow. This index measures manufacturer sentiment and it can be heavily influential on the markets and mortgage rates. Analysts are expecting to see a decline from August’s 59.0 reading, meaning surveyed manufacturers felt business conditions were a little weaker in September than they were in August. This data is important not only because it measures manufacturer sentiment, but it is also very recent data. Some economic releases track data that are 30-60 days old. But the ISM index is only a few weeks old and usually the first report we see each month. If it reveals a reading below 58.3, meaning sentiment fell short of expectations, we should see the bond market move higher and mortgage rates fall tomorrow morning.

Harris Consulting, Inc. DBA Vantage Mortgage Group, Inc.


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