Today’s Mortgage Rates:
Mortgage rates for April 03, 2019 are higher this morning as optimism over a possible resolution to the trade ware with China pushes bond yields higher.
I’ve mentioned this many times over the last 30 – 60 days that a resolution to the trade ware with China would be a negative for mortgage rates however this isn’t the first time we’ve heard “rumors” of a trade agreement between the two countries. On a positive note, at least for mortgage rates, this morning’s ADP Employment report came in below expectations which might help keep a lid on further selling in the bond market.
Mortgage Rates - Conforming Loans
Mortgage Rates - FHA Loans
Mortgage Rates - Jumbo Loans
Mortgage Backed Securities and Treasury Snapshot:
Mortgage Backed Security FNMA 4.0 opened the day at 102.55, and FNMA 3.5 opened the day at 100.92. The 10y Treasury yield started the day at the 2.51% level.
After the ADP Employment report there was some improvement however nothing too significant.
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Economic Data – This Week:
Today we have the weekly Mortgage Market Index, ADP Employment report and ISM Non-Manufacturing report. On Friday we have the BLS Employment report.
Mortgage Market Index:
Mortgage application for both refinance and purchase surged in the latest survey as homeowners and homebuyers rushed to lock in terms. The Mortgage Refinance Index came in at 1786 (last week it was 1289.5) and the Mortgage Purchase Index came in at 276.6 (last week it was 267.6). The overall Mortgage Market Index increased from 424.6 to 503.6.
The increase in applications is good news for the mortgage industry however it may create an issue for consumers. When mortgage companies receive too many applications that can have a negative effect on consumer mortgage rates. Once mortgage companies reach their capacity to process applications they tend to be reluctant to lower interest rates even if market conditions improve (bond market). In fact lenders will increase rates to reduce the follow of applications when the inflows of applications are significant.
The good news is that the industry is not at that point yet however if the current levels of applications continue for the next 2-4 weeks this could become an issue.
ADP Employment report expectations were for a 170,000 jobs created in March however the reading came in at 129,000 jobs created. February’s reading of 183,000 jobs created was revised higher to 197,000 jobs created.
The bond market reaction was somewhat muted however the weaker than expected report should help keep a lid on the bond market sell-off that resumed in the overnight session.
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.
Loan Officer Kevin O’Connor:
Kevin grew up in California and works with clients throughout the state. From the initial quote to the application to the final closing; Kevin works directly with each and every homeowner and encourages his clients to ask questions so that they’re better informed. He updates koloans.com on daily basis and you can connect with him on social media: Twitter Rates01