The 10y yield opened today at the 2.88% level and Mortgage Backed Securities (MBS) also opened in positive territory as we head into the weekend. For most lenders mortgage rates will start the day at the same levels as yesterday. This morning we had the Retail Sales report which came in as expected (last months report was revised higher) and later today we have the 30y Bond auction. Mortgage rates for December 14, 2018 should be somewhat stable.
A Wait And See:
As previously mentioned earlier in the week; it appears the bond market and for that matter mortgage lenders are taking a “wait and see” approach before next week’s Fed meeting. Most investors and analyst believe the Fed will raise again however there is a chance they may soften their stance on future rate hikes.
They’re in a difficult situation because if they do “soften’ their tone about future rate hikes then that may send a signal to the markets that the Fed is concerned about future growth and thus the stock market might sell off as we finish out the year.
However if they don’t soften their tone then that also might cause some concerns because more and more investors are starting to believe the Fed might be going too far with their rate hikes. Maybe they spend some extra time crafting their statement before it’s release to ensure they don’t disrupt markets.
Federal Housing Finance Agency:
Earlier in the week the White House announced it’s nominee to head the Federal Housing Finance Agency (FHFA). Anthony Calabria has a long history in the housing and mortgage industry however he has come under some criticism for previous comments he made about the two mortgage giants Fannie Mae and Freddie Mac.
It’s unlikely he’ll be confirmed before the current director’s term expiries so FHFA will most likely have to appoint an interim director. The future of Fannie Mae and Freddie Mac is uncertain at best and most law makers avoid the discussion because it’s a complex situation. Many law makers believe the U.S. government should not be involved with Fannie Mae and Freddie Mac however removing the government is easier said than done.
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.
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Have a great weekend everyone!