After the three-day weekend mortgage rates for February 19, 2019 will start the day at similar levels to last week. Most mortgage companies were closed Monday as well as the bond market.
Mortgage Backed Securities and Treasury Snapshot:
Mortgage Backed Security Coupon FNMA 4.0 opened the day at the 102.00 level and the 10y Treasury opened at the 2.66% level. Shortly after the open Mortgage Backed Securities and Treasuries continued to improve as the FNMA 4.0 coupon moved to 102.02 and the 10y yield move below 2.65%.
FHA Mortgage Rates
Today we have the NAHB Housing Market Index. On Wednesday we have the weekly Mortgage Market Index and the FOMC Minutes. On Thursday we have Unemployment Claims (will they continue on their higher trend?), Durable Goods, Philly Fed and Existing Home Sales. There are no important economic reports on Friday February 22nd, 2019.
The Week Ahead:
Here is what we are looking at this week when it comes to mortgage rates and the Mortgage Backed Securities market. Mortgage Backed Securities, Treasuries and mortgage rates have been in a range since all three bottomed out early January 2019. Starting off the week we’re near the bottom of that range; will there be a bounce higher, will they continue along the bottom of the range or will they break below the range?
Important events that may influence mortgage rates this week:
- The stock market
- Trade negotiations with China
- Weekly unemployment claims
- Durable Goods and Philly Fed report
- 30 Year Bond Auction
For more detailed information on the above please be sure to read yesterday’s mortgage rate post.
March 2019 Mortgage Rate Forecast:
As we move into the middle of the month we can start to look at what might be in-store for next month. Forecasting mortgage rates is not an exact science; and every forecast is just an opinion. You should not take the following as “fact” but rather as information that can be used to stay better informed. March 2019 mortgage rates face some of the same challenges we’re seeing in February:
- The economy
- Trade negotiations with China
- Washington, D.C.
Overall we believe mortgage rates will remain stable and in their 2019 range heading into March (with a small chance of slightly improved terms if our current bond friendly environment continues). Expectations for a resolution to the trade talks with China have been somewhat high the last few weeks and one of the main reasons stocks continue to rally. Whats not clear is how bonds are viewing this and if a deal is reached how large of an impact it will be (on bonds/mortgage rates). On the flip side; if no deal is reached before the end of February and we start March with the trade war still going on what will be the response of the markets? Will bonds and mortgage rates move below the recent range?
As usual lots of questions as we near the end of the month. We’ll continue to pay close attention to the events that might shape mortgage rates to keep our clients better informed.
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 obtain 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 a 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.