Mortgage rates for February 14th, 2019 will start the day at improved levels from yesterday afternoon. Mortgage Backed Securities and Treasuries both opened positive this morning after selling off the previous three days. Since early January it appears we’ve been in a range for mortgage rates, Mortgage Backed Securities and Treasuries. If they improve from these levels before the weekend that range will be confirmed and in tact heading into next week. Lenders are closed on Monday; President’s Day.
Mortgage Backed Securities and Treasury Snapshot:
FNMA 4.0 opened the day at the 101.31 level and the 10y yield started the day at the 2.69% level. Yesterday the 10y yield pushed as high as 2.715% and the good news is it stayed below 2.72% (an important level for the 10y). As for Mortgage Backed Securities; the FNMA 4.0 coupon broke through the 102.00 level however the break was not significant. Ideally we would like to see that move back above 102.00 and finish the week at a higher level than what we are seeing this morning.
FHA Mortgage Rates
Today we had the Core Producer Prices report (somewhat important for mortgage rates), Retail Sales and weekly unemployment claims. Friday we have Import and Export prices and the 1y and 5y inflation outlook.
Next week we have the following reports: Markets are closed Monday for Presidents day; and on Tuesday we have the NAHB HMI report. On Wednesday we have the weekly Mortgage Market Index and the FOMC Minutes. On Thursday we have Unemployment Claims, Durable Goods, Philly Fed and Existing Home Sales.
Retail Sales Report:
A huge miss this morning for the Retail Sales report. Expectations were for a .2 increase and the final number came in a -1.2. Post report the 10y yield moved from 2.69% to just below 2.66%. Mortgage Backed Securities improved as well however the rally was a bit more subdued. The report was for the month of December and is surprising to see it come in with a decline. It will be interesting to see where the January report comes in; will retail sales bounce back to stronger levels or is this the beginning of a trend?
Core Producer Prices Report:
The Core Producer Prices report came in stronger than anticipated. Expectations were for a 2.5 y/y reading and a .2 m/m reading however the final reading came in at 2.6 y/y and .3 m/m. Increased prices is a negative for bonds and mortgage rates however the higher number is not overly concerning due to the huge drop in Retail Sales.
Weekly Jobless Claims:
Weekly jobless claims came in higher than expected. Expectations were for 225k claims and the reading came in at 239k claims. It was an increase from last weeks reading of 234k claims. These are elevated levels from the previous readings of sub 200k claims however even at 239k the levels are still low. Something to keep an eye on as we move towards the end of February.
Government Shutdown Update:
Yesterday morning the President’s team was saying he was going to move forward with the deal reached to keep the government open despite the fact that it lacked the $5 billion the President wanted for building a wall along the southern border. Fast forward to the end of the day and they adjusted what they previously said and claimed the President was undecided. Less than 48 hours to go before the midnight deadline on Friday.
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 3.75%. 30 year fixed FHA mortgage rates are below 4.125%. Please keep in mind that mortgage rates adjust daily; sometimes they adjust multiple times in a day when the bond market is volatile. Also things like obtaining cash out, lower credit scores, higher Loan-To-Value ratios, rental properties and the subordination of a second mortgage will cause in an increase in your mortgage rate. 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.
JB Mortgage Capital, Inc.:
We offer industry low mortgage rates, personal one-on-one service and we have an A+ rating with the Better Business Bureau (BBB). We also have the top rating with the Business Consumers Alliance (AAA). We utilize the latest technology to ensure a fast closing and Loan Officer Kevin O’Connor has over 14 years of experience as a Loan Officer. You can contact him directly at 1-800-550-5538.