Mortgage Rates December 19, 2018

Mortgage rates are expected to start off the day at similar levels as yesterday however that could change later this afternoon.

Why? Because it’s Fed decision day!

Most analyst believe they’ll raise rates and in their post meeting statement take a more “dovish” tone with future rate hikes. The 10y yield open today’s trading at the 2.81% level while Mortgage Backed Securities are also set to open in positive territory.

Older couple in front of home


So what is my prediction for the Fed decision and market reaction?

I’m going with what many analyst believe; they’ll raise and in their post meeting statement say they’ll take a more cautious look at raising rates in 2019. As far as the market reaction – that is really hard to say as a case for yields moving higher and yields moving lower can be made. Mortgage rates for December 19, 2018 might move depending on what the Fed has to say.

Secretary Mnuchin:

In an article on Bloomberg yesterday Secretary Mnuchin discussed the future of Fannie Mae and Freddie Mac. He mentioned that the he would like to see the two government controlled mortgage giants come out of conservatorship and he wants to work with both Democrats and Republicans on finding a solution.

Generally speaking I think most law makers support this idea however its easier said then done. As the months go on we’ll have to see what the plan is and for now it appears to mostly be in the early stages of discussion. The nominee to head the Federal Housing Finance Agency, Anthony Calabria, is a supporter of this idea and once in office will most likely work closely with Secretary Mnuchin on this.

Economic Data:

Yesterday we had Building Permits and Housing Starts for November and along with the Fed decision we have Mortgage Refinance and Mortgage Purchase application data and Existing Homes Sales. Thursday we have the Philly Fed Index, and Friday we have Durable Goods and Core PCE.

Next week is the Christmas holiday so most lenders and the bond market will close early on Monday and close on Tuesday. Things will start back up again on Wednesday when we have the CaseSchiller reports, then on Thursday we have the New Home Sales reports and to finish the week we have the Chicago PMI report.

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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Here is some information on conforming loan limits as we head into 2019: “On November 27th, 2018 FHFA announced they were raising the conforming loan limits which is good news for homeowners and homebuyers in California. This allows some mortgage loans that were previously labeled “jumbo” to now be placed in the conforming loan limit category. Here are the 2019 Conforming Loan Limits for the 58 counties in California. “One-Unit” refers to a property with one structure (ie a Single Family Residence – SFR), “Two-Unit” is a Duplex etc. Home values have increased over the last few years and raising the loan limits allows more people to qualify for the best available mortgage rates.”

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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

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