Mortgage rates are starting off the month near their two-year lows however mortgage rates remain under pressure as bond yields move higher. The Mortgage Backed Securities market is selling off this morning (more on the reason why below) and that might end up putting pressure on mortgage rates later today if the selling continues. If there are any significant moves with mortgage rates later today I’ll update the post with that information.
Mortgage Backed Securities and Treasury Snapshot:
Mortgage Backed Security FNMA 4.0 opened the day at 102.75, and FNMA 3.5 opened the day at 101.20. The 10y Treasury yield started the day at the 2.44% level.
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Bonds Are Selling After A Strong Manufacturing Report Out of China:
Overnight there was a strong manufacturing report out of China. The Caixin/Markit Manufacturing Purchasing Managers Index (PMI) report came in at 50.8 and analyst were expecting a 49.9 reading. A reading above 50 shows economic expansion and a reading below shows economic contraction. It was the strongest report in eight months.
A 50.8 reading is not a huge reading; in fact it’s barely above the breakeven point however the news out of China has been dismal for months that any sign of growth is a welcome relief for investors.
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Economic Data – This Week:
Today we have the Retail Sales report for February and the ISM Manufacturing PMI data for March. On Tuesday we have the Durable Goods report and the ISM-New York Index for March. On Wednesday we have the weekly Mortgage Market Index, ADP Employment report and ISM Non-Manufacturing report. On Friday we have the BLS Employment report.
Retail Sales Report:
The Retail Sales report came in below expectations this morning however the bond market had little to no reaction to the weak report. Expectations were for a .3% increase however the final reading came in -0.2%.
The prior months reading was revised higher; originally it was reported at 0.2% growth and today it was revised to a 0.7% growth. Bonds remained in selling mode post data.
ISM Manufacturing PMI:
The ISM Manufacturing PMI report comes out at 10am EST. Expectations are for a 54.5 reading and last month the report came in at 54.2. If there is a significant reaction to the report I’ll update the post with that information.
ISM data came in stronger than expected. The reading was for 55.3 and expectations were for a reading of 54.5. Bonds sold off on the report; the 10y yield moved to 2.47%.
JB Mortgage Capital, Inc.:
We offer industry low mortgage rates for both refinance and purchase transactions, personal one-on-one service and we have an A+ rating with the Better Business Bureau (BBB). We also have a top rating with the Business Consumers Alliance (AAA). We utilize the latest technology to ensure a fast closing and Loan Officer Kevin O’Connor has over 14 years of experience as a mortgage professional.
When it comes to mortgage rates please keep in mind that mortgage rates adjust daily; sometimes they adjust multiple times in a day when the bond market is volatile. Also things like obtaining cash out, lower credit scores, higher Loan-To-Value ratios, rental properties and the subordination of a second mortgage will cause in an increase in your mortgage rate.
To obtain the most up-to-date quote, specific to your loan scenario be sure to contact Loan Officer Kevin O’Connor at 1-800-550-5538 or you can submit a “Contact Us” request on the our website.