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Mortgage Backed Securities:
Mortgage rates will be a bit worse today as we move towards the last weekend in 2018. Yesterday was an explosive day for stocks and that put pressure on the bond market pushing the 10y yield to 2.81% before moving back below 2.80% in evening trading. The Mortgage Backed Securities also sold off and thus mortgage rates for some lenders were a bit worse yesterday afternoon. Considering that it’s Thursday before a long weekend (many investors/traders will be out of the office until late next week) I would not be surprised to see lenders take a more of a defensive position with mortgage rates in case we continue to see significant market volatility. The good news is the 10y yield stayed below 2.82% despite the largest one day gain in stocks in the history of the stock market. This morning the 10y opened in positive territory with the yield at the 2.77% level and stocks appear set to open sharply lower. We’ll see how it plays out the rest of the week and next but I tough day yesterday that was a glimmer of hope that the recent rally in bonds and move down in mortgage rates is not completely over.
Remember my post from yesterday?:
“It will be interesting to see how the markets act between now and Jan 2nd. Many traders are off and on vacation so usually the markets are stable and calm. That might not happen this week as any significant moves might jolt the market due to the lack of trading volume. We shall see!” Well yesterday was not calm and the market was subject to a significant jolt due to a lack of trading volume. In fact volume for the Dow was around half of what it was just two trading sessions earlier. Another significant event yesterday was the 5y auction which did not go well and thus put additional pressure on bonds.
Today we have unemployment claims, Monthly Home Prices report, New Home sales, Consumer Confidence level report, and a 7yauction (hopefully this one goes a bit better than the 5y auction yesterday). On Friday we have the Chicago PMI report, Pending Home Sales and Crude Oil Inventories. As mentioned yesterday, next week the market closes early on Monday; and remains closed on Tuesday. Mortgage companies and markets re-open on Wednesday. There are no important economic reports on Wednesday however on Thursday we have the ADP National Employment Report for December, ISM New York Index for December, ISM Manufacturing PMI, ISM Manufacturing Prices Paid for December (an important piece when it comes to inflation) and Vehicle Sales. To end the week we have the BLS Employment report, unemployment rate and Average Earnings for the month of December.
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Currently we are seeing:
30 year fixed mortgage rates below 4.375%, 20 year fixed mortgage rates below 4.25% and 15 year fixed rates below 3.625%. Mortgage rates adjust daily; sometimes they adjust multiple times in a day when the bond market is volatile. To get 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. 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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Our California Home Loan Rates page was recently updated: At JB Mortgage Capital, Inc. we provide low California home loan rates for both purchase and refinance transactions. Whether it’s a fixed rate or an adjustable rate mortgage – Loan Officer Kevin O’Connor has the knowledge and experience to help each and every client obtain a great home loan rate. The best home loan rates and programs can provide significant benefits to a client looking to refinance their current loan or purchase a new home. From San Diego to northern California; JB Mortgage Capital, Inc. covers all of California. To find information about current mortgage rates; please be sure to visit our Mortgage Rates section or you can connect with Kevin O’Connor on Twitter: @Rates01.