Mortgage rates for April 15th, 2019 will start the day at similar levels seen last Friday. Mortgage rates have moved up from their recent lows however they still remain near those levels.
Both Conforming and FHA fixed rate mortgages remain the most attractive terms. Mortgage rates below 4.00% (30 year fixed rate) are still available and mortgage rates below 3.625% are still available on the 15 year fixed rate mortgage term.
FHA Mortgage Rates
Jumbo Mortgage Rates
Mortgage Backed Securities and Treasury Snapshot:
Mortgage Backed Security FNMA 4.0 opened the day at 102.41, and FNMA 3.5 opened the day at 100.77. The 10y Treasury yield started the day at the 2.56% level.
After the open bonds continued to sell off and the 10y yield moved to 2.57%. Keep in mind that this is a short week for the bond market; the bond market closes early on Thursday and is closed on Friday.
Despite the selloff bonds are still in a good place and that is helping mortgage rates. Let’s not forget that six-seven months ago 30 year fixed mortgage rates were above 5.00%. Generally speaking it’s perfectly normal to see a selloff in bonds after the move lower that started back in November/December of 2018.
Mortgage Rates This Week:
It would not be surprising to see elevated mortgage rates this week considering the recent selloff in the bond market and the fact that bond market close early on Thursday and are closed on Friday (most mortgage lenders will have normal working hours this week). But I do not think this is the beginning of a huge move up in mortgage rates.
When you have the those two things in place; it’s generally been my experience that mortgage rates are susceptible to moves higher as mortgage companies take a more conservative approach to the mortgage rates they issue.
We’ll be keeping an eye on the Retail sales report (comes out Thursday). Previously the Fed noted the previous weak Retail Sales report as a concern for them. A higher than expected reading would be bad for mortgage (a significantly lower than expected report would be a positive for mortgage rates).
The ongoing risk to mortgage rates is a possible resolution to the US – China trade war.
Economic Data This 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.
NAHB Housing Market Index:
Expectations were for a of 6.7 and the actual reading came in at 10.1. This is positive news for homebuilders who have seen a slowdown that appears to have started late 2018.
Most Real Estate industry professionals would agree that there is a shortage of available homes nationwide. Inventory remains low which continues to be a problem for those looking to purchase a home.
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.