Mortgage Rates April 09, 2019

Mortgage rates for April 09, 2019 will start the day at similar levels to yesterday. There are no major economic reports today and tomorrow we have the Consumer Price Index report (CPI) – more on this below.

Yesterday afternoon Mortgage Backed Securities sold off which has put some pressure on mortgage rates to move higher if the selling continues. The Mortgage Backed Securities Market is where mortgage rates originate from and movements within this market generally dictate the direction of mortgage rates.

And just to be clear; the Fed does not set mortgage rates they only have an influence over the MBS market which is where mortgage rates originate.

FHA Mortgage Rates

Jumbo Mortgage Rates


Mortgage Backed Securities and Treasury Snapshot:

Mortgage Backed Security FNMA 4.0 opened the day at 102.58, and FNMA 3.5 opened the day at 100.97. The 10y Treasury yield started the day at the 2.52% level. Overall the 10y treasury yield remains at a great level especially when you consider where it was six months ago.

Economic Data – This Week:

There are no major economic reports on Tuesday.

Wednesday we wave the weekly Mortgage Market Index and Core CPI (Consumer Price Index). On Thursday we have Core Producer Prices and on Friday we have Import and Export Prices along with 1yr and 5yr Inflation Outlook.

The Importance of the Consumer Price Index Report:

There are certain reports that influence mortgage rates more than others. One of them is the Consumer Price Index report (CPI). It’s one of the most widely used reports that measures inflation. When it comes to mortgage rates, and more specifically Mortgage Backed Securities (MBS), inflation is the “enemy” and higher inflation means higher mortgage rates.

Heading into tomorrow’s CPI report mortgage rates remain near their recent lows however there is some pressure/risk for mortgage rates to move higher from these levels especially if the CPI report comes in higher than expectations.

Expectations are for a March increase of 0.3% and an annual increase of 2.1%.

If we were to see readings above those levels mortgage rates might move higher due to stronger than anticipated inflation. However if we were to see a lower than expected reading mortgage rates might improve in the following days. To see a dramatic improvement the report would have to come in way below expectations and based on what I’ve seen over the years that rarely happens with the CPI report.

Mortgage Rate Lock Considerations Before the CPI Report:

If you currently are being offered a rate that improves your financial position then the prudent decision is to lock in terms; especially if you’re in the process of refinancing your home and you’re improving your interest rate by .375% or more.

For those that are about to enter a contract to purchase a home or have recently entered a contract to purchase a home should always consider locking in terms sooner rather than later. Waiting to lock in your terms when buying a home that closes in 30 days carries a lot of risk and those risks need to be properly evaluated.

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.

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About Loan Officer Kevin O'Connor

About Loan Officer Kevin O'Connor

He is the founder and main contributor of He has over 15 years of experience as a Mortgage Loan Originator (MLO) and is a fully licensed with the state of California and the Nationwide Mortgage Licensing System (NMLS). He has a top rating with the Better Business Bureau and a top rating with Zillow. He continually delivers the results homeowners are looking for; low rates, fast closings and exceptional service: "Helping Homeowners Achieve Their Dreams"  CA DRE #01499872 and NMLS # 247447