The 10y yield opened today at the 2.89% level and Mortgage Backed Securities (MBS) also opened in negative territory. Mortgage rates will start the day at similar levels as yesterday however they are under pressure as the 10y yield moves towards 2.90%. If the pressure on mortgage rates continues we may see mortgage rates for December 12, 2018 move higher.

Family home

Economic Reports:

This morning we had the MBA Mortgage Index, Refinance Index and Purchase Index. Both Refinance and Purchase applications increased in the latest survey which tends to happen when mortgage rates move down. Also this morning we had the Core CPI report and the data came in as expected except earnings which actually showed a decline (expectations were for an increase).

That is something to keep an eye on over the next few months. Later today we have a 10y Note auction. On Thursday we have Export and Import Prices and on Friday we have Retail Sales and a 30y Bond auction. Looking towards next week we have the much anticipated Fed meeting. Expectations are for the Fed to raise rates again however many analyst feel the press release that comes out post meeting will take a more “dovish” tone moving forward.

There has been a noticeable shift in recent weeks, when it comes to economy data, and many analyst are starting to become concerned about a possible slowing in the U.S. economy.

Fannie Mae AUS:

Over the weekend Fannie Mae updated their Automated Underwriting System (AUS) and some of the changes affected those with high debt-to-income ratios who are looking to do a “cash out” loan. Typically Fannie Mae does not request asset reserves on conforming loan amounts for primary residences.

However if you’re Debt To Income ratio (aka DTI) is above 45% you might be asked to show some liquid asset reserves before obtaining loan approval (if you’re doing a cash out loan). Liquid asset reserves typically include showing states for a checking or savings account. Other options include a money market account, stocks and even a 401k.

Currently We Are Seeing:

30 year fixed mortgage rates below 4.50%, 20 year fixed mortgage rates below 4.375% and 15 year fixed rates below 3.75%. Mortgage rates adjust daily; sometimes they adjust multiple times in a day when the bond market is volatile.

At JB Mortgage Capital, Inc. we offer residential mortgage loans on 1-4 unit properties for both purchase and the refinance of a current mortgage. We have fixed rate mortgage loan programs and adjustable rate mortgage loan programs.

Staying Up-To-Date:

Are you looking to stay up-to-date with mortgage rates and current mortgage news? A great place to do that is on our Mortgage Rates page. Our Mortgage Rates page will include current rate information, industry news and bond market updates. Also; you’ll be able to review previous posts and make an inquiry if you have a question.

On our Twitter feed we will periodically update our followers when the market moves significantly during the day or if there was a relevant news story as well.

JB Mortgage Capital, Inc.:

If you are considering obtaining a new mortgage please be sure to call me today for a no cost – no obligation quote at 1-800-550-5538 (my direct number). We offer industry low mortgage rates, the latest technology and have a top rating with the Better Business Bureau. And when you work with us you’ll work with directly with me from application to closing. One person; not 3, 4 or even 5 like most mortgage companies.

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Loan Officer Kevin O'Connor

Loan Officer Kevin O'Connor

He is the founder and main contributor of He has over 16 years of experience as a Mortgage Loan Originator (MLO) and is fully licensed with the state of California and the Nationwide Mortgage Licensing System (NMLS). He has a top rating with the Better Business Bureau, Google, and Zillow. He continually delivers the results homeowners are looking for; low rates, fast closings, and exceptional service. CA DRE #01499872 and NMLS # 247447