Today’s Mortgage Rates:
Mortgage rates for April 18, 2019 have improved since yesterday as the Mortgage Backed Securities (MBS) market opened the day in positive territory.
This mornings rally in MBS started after Germany reported some dismal economic numbers. Many investors and analyst believe there is a good chance Germany enters a recession which may have a negative affect on the US economy.
Today is the redacted release of the Mueller report and it’s unlikely it will have any affect on financial markets and mortgage rates.
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 102.44, and FNMA 3.5 opened the day at 100.67. The 10y Treasury yield started the day at the 2.56% level.
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Economic Data This Week:
Today 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.
Philly Fed Business Index:
Expectations were for a 10.4 reading however the final reading came in at 8.5 (last month the reading was 13.7). The Philly Fed Index is an important gauge of economic activity and a below expectations report is a positive for mortgage rates.
While the March reading was a positive sign for the economy the negative reading for February raised some concern.
Next months reading will be closely watched; further deterioration could be confirmation of slowing growth in the region.
The Retail Sales report beat expectations this morning. Expectations were for a 0.9% increase however the reading came in at a 1.6% increase.
Overall this was a positive report for the economy and a negative for Mortgage Backed Securities. Post report the MBS rally stalled and reversed course.
Mortgage Rates and Three Day Weekends:
After 14 plus years as a Loan Officer you start to recognize patterns when it comes to how things work in the mortgage industry.
When it comes to three-day weekends (ie holiday weekends) mortgage rates tend to (not always) be a bit conservative (all things being equal). Mortgage lenders will usually avoid pricing aggressive terms during a long weekend. This is also very evident during Thanksgiving, Christmas and New Years.
Why are lenders more conservative with mortgage rates around holiday weekends?
My guess is that lenders don’t want to be caught off guard when the following week starts so they price current mortgage rates a bit more conservatively. This does not always happen but is more likely to happen during periods of volatility and uncertainty (similar to what’s happening right now).
Bond markets close early today and won’t open until Monday; when it comes to pricing mortgage rates that’s a long time to go without market direction.
Economic Data Next Week:
On Monday we have Existing Home Sales and on Tuesday we have New Home Sales. On Wednesday we have the weekly Mortgage Market Index report and Thursday is the Durable Goods Report for March. On Friday is the Advanced Q1 GDP and Consumer Inflation Expectations.
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