The 10y yield opened today at the 2.88% level after pushing below 2.83% yesterday. Heading into the weekend mortgage rates should be similar to yesterday afternoon’s level unless there are significant movements in bonds later today.
Yesterday the stock market sold off significantly on fears of a slowing economy and bonds rallied until a report came out (Wall Street Journal) that the Fed was most likely to now take on a “wait and see” approach when it comes to raising interest rates. That is a significant change from previous Fed intentions and to be clear it was not an “official” statement from the Fed.
Just after the report came out stocks rallied and bonds sold off pushing the 10y yield to the 2.89% level.
This morning we had the BLS Employment report which will included the number of jobs created along with earned wage data. The report came in below expectations however the market’s reaction was somewhat muted.
The expectations were for 200,000 jobs created and for wages to grow by .3 however both reported numbers came in below that. 155,000 jobs were created in November and wages came in a .2. Not a huge miss but probably enough to keep investors interested in buying bonds heading into next week.
As mentioned; I don’t see any significant changes to the low mortgage rates we’ve had this week however if there are major movements later today I’ll certainly keep everyone posted.
Next week we have several very important economic reports and the following week is the all important Fed meeting. On Tuesday we have the Core Producers Prices Index and on Wednesday we have the MBA Mortgage Index (Refinance and Purchase as well), Core CPI and a 10y Note auction.
On Thursday we have Export and Import Prices and on Friday we have Retail Sales and a 30y Bond auction. The Fed will be keeping an eye on these reports, especially the Core CPI report to help shape their decision the following week.
Today’s weaker than expected employment report was not great but it wasn’t low enough to cause concern for FOMC members. Most still think the Fed raises rates however they are now more likely to soften their tone on future hikes.
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. These continue to be 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.
Check out – Conforming loan limits for 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.”