Mortgage rates for April 29th, 2019 are starting of the day at similar levels to last week.
This is a big week for mortgage rates due to the release of several important economic reports and the FOMC meeting (the Fed meeting). Generally speaking; fixed rate mortgages remain more attractive than adjustable rate mortgages and overall mortgage rates remain near their 2019 low.
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Mortgage Backed Securities and Treasury Snapshot:
Mortgage Backed Security FNMA 4.0 started the day at 102.67, and FNMA 3.5 was at 100.98. The 10y Treasury yield opened the day at the 2.50% level.
However post Core PCE report FNMA 4.0 moved down to 102.63 and FNMA 3.5 moved down to 100.91. The 10y Treasury yield moved up to 2.51%. Nothing too significant which is why mortgage rates are starting off the week at similar levels to last week.
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Economic Data This Week:
Today 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.
Core PCE and Personal Income Report:
Expectations for the Core PCE reading were for 1.7% and the report came in at 1.6%. Last months reading was 1.8%. Personal Income expectations were for a 0.4% increase however the reading came in at 0.1% and last months reading was 0.2%.
Overall these reports are bond market and mortgage rate friendly. So why are bonds selling off?
My best guess is that bond traders are taking a cautious approach as we head into the Fed meeting, the ISM and Employment reports. As we’ve noted many times; bond traders are cautious in nature especially heading into a Fed meeting combined with several important economic reports.
The Fed Meeting And Mortgage Rates:
The relationship between the two can volatile; we sometimes see huge swings in the bond market post Fed statement. You only have to look back to March to see an example of what can happen after the conclusion of a Fed meeting.
Mortgage rates can also be volatile post Fed meeting. Moves to the upside can be more dramatic than moves to the downside which is an important point to remember as we head into the two day meeting (the meeting starts tomorrow).
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.