Mortgage rates for April 02, 2019 are starting off today at similar levels to Monday as the bond market levels off from yesterday’s significant selling. After one of the fastest moves down in nearly ten years mortgages rates were bound to reverse course and move higher.
The good news is mortgage rates overall are still near their two-year low mark and remain very attractive compared to mortgage rates offered over the last 6-12 months. What will mortgage rates do from here? Later in the article we cover that more.
FHA Mortgage Rates
Jumbo Mortgage Rates
Mortgage Backed Securities and Treasury Snapshot:
Mortgage Backed Security FNMA 4.0 opened the day at 102.64, and FNMA 3.5 opened the day at 101.08. The 10y Treasury yield started the day at the 2.47% level.
Yesterday the FNMA 4.0 went as low as 102.53 and FNMA 3.4 went as low as 100.86. The 10y yield pushed above 2.50%.
What Will Mortgage Rates Do From Here:
When discussing the future of mortgage rates you have to keep in mind that predicting them with certainty is impossible. So many factors go into determining a mortgage rate that it’s difficult at best to accurately say what mortgage rates will do a week from now, a month from now or a year from now.
What we can do is discuss patterns we’ve seen before, and also the current environment. And the good news is that we have a recent example to point to help us better understand what might happen.
From early November 2018 to early January 2019 bonds and mortgage rates improved. The Government Shutdown, trade war with China and a weakening economy were all contributing factors.
Then bonds and mortgage rates reversed course on 3rd/4th and moved higher. From here a range was established that lasted until the end of March 2019.
The overall main reason for the improvement in mortgage rates still remains; the economy is slowing. I think there is a reasonable chance we’re entering another period in which the bond market and mortgage rates level off and form a range similar to what we’ve seen previously.
That being said; if economic news is super positive and a trade deal is reached with China then you’ll probably see mortgage rates move higher from these levels. And the opposite could happen with mortgage rates if the economy continues to deteriorate from current levels.
A Suggestion About Mortgage Rates and Moving Forward:
If current mortgage rates are at a place in which it makes financial sense to refinance your mortgage or purchase a home then don’t hesitate to move forward. Avoid the “lets wait and see” approach because usually that ends up costing you time and money as it did for the tens of thousands of homeowners who took a wait and see approach in the summer/fall of 2016.
While the current environment is favorable for mortgage rates it’s impossible to say if that will remain as we move further into April so take advantage of the current market if it puts you in a better financial position with your home.
Economic Data – This Week:
Today 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.
Durable Goods Report:
The Durable Goods report came in better than expected however it was still well below last months reading. Expectations were for a -1.8% reading and the actual reading came in at -1.6%. There was little to no market reaction to the report.
ISM-New York Index Report:
The ISM-New York Index report is released later in the morning. If anything significant happens as a result of the report I’ll go ahead and update today’s post.
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.