Due to the bond market selloff this morning mortgage rates are moving higher as we head into the weekend. There are a number of reasons for the move higher; positive economic news out of China, European bond yields are moving higher and US stocks are moving higher on stronger than expected bank earnings. The good news is Conforming fixed mortgage rates and FHA fixed mortgage rates are still lower today than they were a month ago.
California Mortgage Rates (Conventional)
California FHA Mortgage Rates
California Jumbo Mortgage Rates
Mortgage Rate Outlook For Next Week:
After having a good four days, mortgage rates are moving higher and that may continue into next week. At the end of March there was big push by investors to buy bonds and thus mortgage rates improved. That interest has evaporated and until we see something that sparks investors to re-enter the bond market mortgage rates are going to be vulnerable to increases.
Next week is a short week for the bond market due to the Easter holiday weekend (bond markets close early on Thursday and are closed Friday). If we continue to see elevated levels in the bond market next week mortgage companies will be very cautious with mortgage rates heading into a long three-day weekend.
Mortgage Backed Securities and Treasury Snapshot:
Mortgage Backed Security FNMA 4.0 opened the day at 102.52, and FNMA 3.5 opened the day at 100.89. The 10y Treasury yield started the day at the 2.54% level.
Post Import and Export Prices report the 10y Treasury yield moved above 2.55% and Mortgage Backed Securities sold off as well.
Request A Low Rate Mortgage Quote
Economic Data – This Week:
Today we have the Import and Export Prices along with 1yr and 5yr Inflation Outlook and Consumer Sentiment for April.
Import And Export Prices:
Import prices were expected to come in at 0.4% increase; the final reading came in at 0.6% increase. Export prices were expected to come in at 0.2% increase; the final reading came in at 0.7% increase.
The report is not a bond/mortgage rate friendly report and could push rates higher before the end of the day.
1yr and 5yr Inflation Outlook Report:
The 1yr and 5yr inflation outlook report comes out at 10am EST. Expectations for both reports is a 2.5 reading. A reading that comes in higher than expectations would be bad for mortgage rates after this mornings higher than expected Import and Export Prices reports. If there is a significant market response to the reports will updated the post.
Consumer Sentiment For April:
This report is also due at 10am EST. Expectations are for a reading of 98.0. Last month’s reading was 98.4. If there is a significant market response to the report we’ll update the post.
Economic Data – Next Week:
On Monday we have the NY Fed Manufacturing report, Tuesday is the NAHB Housing Market Index and Industrial Production for March. On Wednesday we have the weekly Mortgage Market Index, Refinance Index and Purchase Index. We also have Wholesale Sales and Wholesale Inventories. On Thursday we have the Philly Fed Business Index for April and Retail Sales for March. On Friday we have the Building Permits and Housing Start reports.
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.