Mortgage rates for April 30th, 2019 are starting off the day a bit higher than yesterday. European bond markets sold off overnight and that is putting pressure on US bond markets which is causing mortgage rates to move slightly higher. Fixed rate Conforming and FHA mortgage programs remain near their 2019 lows a day before the Fed decision.
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 102.55, and FNMA 3.5 was at 100.81. The 10y Treasury yield opened the day at the 2.53% level. After the open bonds continued to sell off with the 10y yield pushing as high as 2.55%.
Ideally we would like to see the 10y yield stay at these levels rather than pushing significantly higher. If the 10y yield can hold around this level that would be a positive for Mortgage Backed Securities and mortgage rates heading into tomorrow’s Fed decision.
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Economic Data This Week:
Today we have Employment Wages, the Chicago PMI report and the Consumer Confidence 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.
Expectations for the Employment Wages (Q1) report were for a 0.7% increase and that’s exactly what the reading was this morning. When it comes to inflation wages are a big part of any inflation number. Seeing this report come in as expected is a positive for Mortgage Backed Securities and mortgage rates.
The Chicago PMI report comes out at 9:45 EST; if there is a significant reaction to the report I’ll update the post with that information. The Chicago PMI report can have an impact on the direction of mortgage rates if the reading comes in significantly higher or lower that expected. Expectations are for a reading of 59.0 and last months reading was 48.7.
MORNING UPDATE: The Chicago PMI report came in lower than expected: 52.6. This has had a positive affect on the Mortgage Backed Securities market and the Treasury market. Post report the 10y yield was down to 2.51%.
The Consumer Confidence report comes out at 1oam EST; if there is a significant reaction to the report I’ll update the post with that information. As with the Chicago PMI report, the Consumer Confidence report can also impact Mortgage Backed Securities and home loan rates. Expectations are for a reading of 126.00; last months reading came in at 124.1.
MORNING UPDATE: The reading for Consumer Confidence came in higher than expected (129.2) however it has had little to no impact on the Mortgage Backed Securities market.
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.