Mortgage rates for April 26th, 2019 are starting of the day at similar levels to Thursday. Bond markets are rallying post GDP report which is good news heading into next week. Both Conforming fixed rate programs and FHA fixed rate programs are finishing the week at improved levels.
Considering the number of important events next week it’s important to be cautious with respect to the direction of mortgage rates. More on next week events and how they might impact mortgage rates is covered later in today’s post.
California Mortgage Rates (Conventional)
California FHA Mortgage Rates
California Jumbo Mortgage Rates
Mortgage Backed Securities and Treasury Snapshot:
Mortgage Backed Security FNMA 4.0 started the day at 102.63, and FNMA 3.5 was at 100.94. The 10y Treasury yield opened the day at the 2.52% level. After the GDP report both Mortgage Backed Securities and the 10y Treasury rallied.
The 10y Treasury yield moved to just under 2.50% post report and and the FNMA coupon moved to 102.72.
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Economic Data This Week:
Today we have the Advanced Q1 GDP and Consumer Inflation Expectations.
Advanced Q1 GDP Report:
We’ll update the post after the Consumer Inflation Expectation report comes out. In short the GDP number was much higher than expected (expectations were for 2.00% growth and the reading came in at 3.2% growth) however the internal components of the report were significantly weaker. Because of this bonds rallied post report. The report appears to be a positive for mortgage rates.
It’s been a great day for Mortgage Backed Securities and the Treasury market. Provided the rally holds – continues into Monday we could see some improvements to mortgage rates.
The 3.2% reading was a result of significant gains in Health Care and Inventories (which is not good for the economy). Most other GDP components came in weaker than expected.
While the headline number of 3.2% will get a lot of rave reviews and press; the real story is how weak this report is and concerns for the economy going forward.
Consumer Sentiment and Inflation Expectations:
The Consumer Sentiment report came out at 10am EST. Expectations for the Consumer Sentiment reading were for 97.0 and the final reading came in at 97.2.
Consumer Inflation Expectations came in at 2.3%, which is the same reading last month.
Economic Data Next Week:
On Monday we have the Core PCE report and the Personal Income report for March. On Tuesday we have Employment wages, Consumer Confidence and the Chicago PMI report. Tuesday is also the start of the Fed meeting. On Wednesday we have the ADP Employment report, ISM Manufacturing PMI report and the FOMC rate decision. Thursday we have the ISM-New York Index and Factory Orders report. To finish off the week we have the BLS Employment report and ISM-Non Manufacturing report.
Mortgage Rates Next Week:
Heading into next week we are seeing some positive signs for mortgage rates. That could easily change so it’s important to remain cautiously optimistic as we have so many important events.
It will be interesting to see what the Fed has to say about the economy after last weeks strong Retail Sales report and today’s GDP reading. In addition to the Fed we have Consumer Confidence, Chicago PMI, ISM Manufacturing and non-manufacturing PMI and the all important BLS Employment report.
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.