Mortgage Rates December 4, 2018

The 10y yield opened the day at the 2.96% level and Mortgage Backed Securities (MBS) opened in positive territory as concern of a slowing economy persist.  The market seems to be ignoring the positive effects of the US-China “trade truce” and is more focused on the slowing of the US economy.

Yesterday’s economic reports were a mixed bag with ISM Manufacturing PMI coming in stronger than anticipated however prices paid came in below expectations (good for bonds). Also Car Sales and Construction Spending came in below expectations.

These weaker than expected reports continue to raise the concern that the economy is slowing, even slowing at a faster pace than expected. Investors might become increasingly concerned with the Fed meeting next week where the FOMC is almost 100% certain to raise interest rates again (which will further slow the economy).

Family Home

Economic Reports:

Today we only have one economic report and that is the ISM-New York Index for Nov. Looking at Wednesday; the markets are closed so the economic reports will for Wednesday will be pushed to Thursday. On Thursday we have the MBA Purchase Index, Refinance Index, Mortgage Index, the ADP Employment report, ISM Non-Manufacturing PMI for November, Challenger Layoffs and Factory Orders – wow, huge day! Friday is the big day with the BLS Employment report which will include the number of jobs created along with earned wage data.

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 loan programs for both fixed rate mortgages and adjustable rate mortgages. The lowest fixed mortgage rates we’ve seen since late summer.

JB Mortgage Capital, Inc.:

Call us today for a no cost – no obligation quote at 1-800-550-5538.  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 the same person from application to closing. One person; not 3, 4 or even 5 like most mortgage companies.

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“On December 8th, 2018 the mortgage giant Fannie Mae will be updating its Automated Underwriting System which will adopt some new guidelines for conforming mortgages. Significant changes will come to loan programs that deal with borrower’s that have “debt-to-income” ratios that are looking to take cash out from their property. All conforming loans go through either the Fannie Mae Desktop Underwriter or Freddie Mac’s Loan Prospector before an underwriter approves a loan application.”


The stock market sold off significantly today and bonds rallied. The 10yr yield moved down to 2.88% before moving back up to 2.92%. Unfortunately Mortgage Backed Securities did not follow and generally speaking were barely changed on the day. The Fannie Mae 4.0 coupon was only up 11 basis points on the day; needles to say MBS are lagging significantly compared to 10yr treasury move.

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About Loan Officer Kevin O'Connor

About Loan Officer Kevin O'Connor

He is the founder and main contributor of He has over 15 years of experience as a Mortgage Loan Originator (MLO) and is a fully licensed with the state of California and the Nationwide Mortgage Licensing System (NMLS). He has a top rating with the Better Business Bureau and a top rating with Zillow. He continually delivers the results homeowners are looking for; low rates, fast closings and exceptional service: "Helping Homeowners Achieve Their Dreams"  CA DRE #01499872 and NMLS # 247447