Rates At The End of August

Today’s Mortgage Rates:

As we head into the last week of August 2019; mortgage rates remain near their multi-year lows. Conforming, FHA and Jumbo fixed mortgage rates remain attractive for both homeowners looking to refinance their current mortgage and homebuyers looking to buy a new home.

If you are looking to refinance a home or buy a new home in California please contact me directly for a no-cost/no-obligation quote (online or at 1-800-550-5538). Low rates, fast closings and top-notch customer service.

Mortgage Rates - Conforming Loans

Mortgage Rates - FHA Loans


Mortgage Rates - Jumbo Loans

Mortgage Backed Securities & Treasury Snapshot:

August 26th, 2019:

Mortgage Backed Security FNMA 3.0 started the day at 101.72, FNMA 3.5 started the day at 102.61 and the FNMA 4.0 coupon started the day at 103.66. The 10y Treasury yield started the day at the 1.51% level.

For those who are regular readers; you’ll notice the 10y Treasury yield continues to move down however Mortgage Backed Securities are flat to slightly worse (when compared to last week).

That’s been a common theme the last 4-6 weeks (Treasury rally and Mortgage Backed Securities remain flat or slightly worse). This why mortgage rates have not moved lower as the 10y yield continues to move down. Ideally we’d like to see the rally in the Treasury market to take a pause so that Mortgage Backed Securities can catch up!

August 27th, 2019:

Mortgage Backed Security FNMA 3.0 started the day at 101.61, FNMA 3.5 started the day at 102.52 and the FNMA 4.0 coupon started the day at 103.61. The 10y Treasury yield started the day at the 1.50% level.

Yesterday afternoon Mortgage Backed Securities sold off significantly. This morning they’ve bounced back a bit but have not recovered all of the losses.

August 28th, 2019:

Mortgage Backed Security FNMA 3.0 started the day at 101.77, FNMA 3.5 started the day at 102.67 and the FNMA 4.0 coupon started the day at 103.70. The 10y Treasury yield started the day at the 1.45% level.

August 29th, 2019:

Mortgage Backed Security FNMA 3.0 started the day at 101.80, FNMA 3.5 started the day at 102.69 and the FNMA 4.0 coupon started the day at 103.72. The 10y Treasury yield started the day at the 1.49% level.

Overall mortgage rates look to start the day at similar levels to yesterday as bond markets begin trading relatively flat compared to yesterday. FYI – bond markets are closed on Monday due to the holiday.

August 30th, 2019:

Mortgage Backed Security FNMA 3.0 started the day at 101.75, FNMA 3.5 started the day at 102.67 and the FNMA 4.0 coupon started the day at 103.69. The 10y Treasury yield started the day at the 1.52% level.

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Important Economic Data This Week:

Here we cover the daily economic events that might impact mortgage rates. After the report comes out we’ll update the post with that information and comment on if there is a potential impact on mortgage rates.

The Economic Calendar for the last week of August is packed.

Monday we have the Durable Goods report. On Tuesday we have the CaseShiller and Consumer Confidence report. On Wednesday we have the weekly Mortgage Market Index, and an important 5y Treasury Auction. On Thursday we have the weekly Jobless Claims and Q2 Preliminary GDP report. Also on Thursday is an important 7y Treasury auction. On Friday we have the Core PCE, Personal Income, Chicago PMI and Consumer Inflation Expectations reports.

Durable Goods:

Expectations were for a reading of 1.2% after last months 1.9% increase. This mornings reading came in at 2.1% and had little to no impact on the bond market.

CaseShiller:

Expectations are for a 2.4% increase and the report showed a 2.1% increase.

Consumer Confidence:

Heading into the Tuesday report; expectations are for a reading of 129.5 after last months reading of 135.7. The report came in higher than expected but slightly below last months reading. The 135.1 reading supports the claim that the consumer remains confident about the economy moving forward.

Mortgage Market Index:

Will these low mortgage rates continue to elevate mortgage application volume?

A disappointing report this morning; last weeks reading of 614.6 could not be sustained and the index dropped to 576.2. The Purchase Index decreased from 243.8 to 234.1 and the Refinance Index decreased from 2754.7 to 2545.6.

According to the Mortgage Bankers Association the average 30 year fixed rate increased from 3.90% to 3.94%.

Jobless Claims:

Last week’s reading came in at 209,000 and expectations are for 215,000 claims this week. The report came in as expected; 215,000 claims and the report had no impact on mortgage rates.

Q2 Preliminary GDP:

Expectations are for a reading of 2.0% and that’s exactly what we got this morning. This is slightly below the last reading of 2.1% growth.

Core PCE:

The last reading came in at 1.6% and expectations are for a reading of 1.6%. The reading came in at 1.60%; inline with market expectations.

Personal Income:

Expectations are for an increase of 0.3% after last months 0.4% increase. The Personal Income report came in at 0.1%; below expectations. It was a disappointing reading for the economy but as far as bonds are concerned (and mortgage rates) it is a positive.

Chicago PMI:

Expectations are for a reading of 47.5. The Chicago PMI reading came in at 50.4; much higher than market expectations however there was little to no impact on bond markets and mortgage rates.

Consumer Inflation:

Last month the 1y reading came in at 2.7% and the 5y reading came in at 2.6%. For the most part consumers are not concerned about long term inflation trends.

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).

A+ Rating With The BBB

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.

Older couple in front of home

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 OConnor

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