Mortgage rates for April 04, 2019 will be similar to yesterday. Refinance and purchase fixed rate terms remain near their recent lows as mortgage companies have remained fairly aggressive with their product offerings.
With the Employment report only a day away it would be surprising to see any significant improvements to mortgage rates before the report is released.
FHA Mortgage Rates
Jumbo Mortgage Rates
Mortgage Backed Securities and Treasury Snapshot:
Mortgage Backed Security FNMA 4.0 opened the day at 102.63, and FNMA 3.5 opened the day at 101.00. The 10y Treasury yield started the day at the 2.51% level.
It’s been a difficult week for Mortgage Backed Securities and Treasuries however the move higher was not completely unexpected. Whenever there is a significant rally in bonds there usually is a period in which the rally reverses course. Something very similar happened in January as well.
Moving forward we’ll have to see buyers of bonds re-enter the market to avoid seeing yields and mortgage rates move higher. Mortgage companies prefer market place stability rather than volatility so if a new range was to develop over the next few weeks that would be welcomed turn of events.
Economic Data – This Week:
Today we have the weekly unemployment claims and on Friday we have the BLS Employment report. The BLS Employment report is one of the three more important economic reports. The other two being the CPI report and the ISM report. More on how the employment report impacts mortgage rates below.
The Employment Report And Mortgage Rates:
Tomorrow’s Employment report might have an impact on mortgage rates as we move further into the month of April.
After pushing to near two-year lows; mortgage rates have been moving higher this week as bond market yields were pushing higher.
A stronger than expected Employment report might send mortgage rates even higher and the opposite might happen if the Employment report comes in significantly below expectations. Heading into the report analyst were expecting 180,000 jobs created and wage to come in at 0.3.
While the number of jobs created and the unemployment rate generally get the attention of news outlets; the wage component is very important to bonds/mortgage rates. Higher wages generally means higher inflation which is bad for mortgage rates. Lower wages helps keep a lid on inflation and is a positive for mortgage rates.
Economic Data – Next Week:
On Monday we have Factory orders, on Wednesday we wave the weekly Mortgage Market Index and Core CPI. On Thursday we have Core Producer Prices and on Friday we have Import and Export Prices along with 1yr and 5yr Inflation Outlook. A good rule of thumb; when it comes to getting a good understanding of where the market might be headed follow any report that has to do with inflation.
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.