Mortgage rates for February 20, 2019 will start the day near their one year lows as both Mortgage Backed Securities and Treasuries start the day bouncing between slightly positive and slightly negative territory.
Mortgage Backed Securities and Treasury Snapshot:
Mortgage Backed Security Coupon FNMA 4.0 opened the day at the 102.07 level and the 10y Treasury opened at the 2.63% level. This mornings economic data had no impact to early trading and it appears investors are awaiting on the release of the FOMC Minutes later today before taking a significant position.
FHA Mortgage Rates
Earlier this morning we had the weekly Mortgage Market Index reports and later today we have the FOMC minutes. Tomorrow we have Unemployment Claims, Durable Goods, Philly Fed and Existing Home Sales. There are no important economic reports on Friday February 22nd, 2019. Next week will be a bit more active with many important economic reports slated to be released. More on next week’s schedule in the next few days.
Mortgage Market Index:
The Mortgage Market Index (MMI) reading came in slightly higher than last week; 365.3. Purchases came in at 232.7 (which was lower than last weeks initial reading) and refinances came in at 1084.4 (which is higher than last weeks initial reading).
Last weeks initial readings were all revised lower today (MMI was lowered to 352.6, purchases lowered to 228.9 and refinances lowered to 1019.2). The average 30 year fixed mortgage rate came in at 4.66% (FYI – for most of our Conventional/Conventional-Conforming and FHA home loan products we are well below that average.
Why this matters to mortgage rates:
I think Banks and Lenders are starting to notice how low mortgage application volume is despite mortgage rates moving near their one year lows for most of 2019. Another 3-6 weeks of similar rates and low application volume might force some banks and lenders to be more aggressive with their fixed rate and adjustable rate mortgage programs. I certainly would not count on this but it will be interesting to see if the spread between the 10y yield (currently at 2.63%) and the average 30 year fixed rate (currently at 4.66%) tightens because of low application volume.
FOMC Minutes – 2:00pm EST:
If there are any significant developments from the release we’ll update today’s post with that information. Most analyst and investors are not expecting anything significant to come from the release however every now and then it turns out to be a market mover. And if that is the case today we’ll be sure to let you know.
Why this matters to mortgage rates:
The FOMC Minutes release is important to mortgage rates because it gives analysts and investors a bit more insight as to how the Fed views the economy and it’s plans moving forward. If you remember the most recent meeting they flipped to a more dovish tone on the economy and how they are approaching their balance sheet reduction program.
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.