Mortgage rates for February 25th, 2019 will start the day at higher level as Mortgage Backed Securities and Treasuries start the day in negative territory. The reason behind the move higher? Trade talks with China improve (more on that below).
Mortgage Backed Securities and Treasury Snapshot:
Mortgage Backed Security Coupon FNMA 4.0 opened the day at the 102.03 level and the 10y Treasury opened at the 2.67% level. The selling is moderate and nothing to be too alarmed about at this point. In fact bonds are still below the top end of the range they’ve been in since January and considering the news last night that’s a positive for bonds and mortgage rates.
U.S. – China Trade Talks:
The President announced “significant progress” in the trade negotiations with China. He noted there was progress in several key areas including intellectual property protection, technology transfer, agriculture, services and currency. He further announced the implementation of new tariffs, that were supposed to go into effect March 01, will be delayed. As you know this has been one of the major items we’ve been watching due to the risk it poses to bond markets and mortgage rates. We’ll keep an eye on that upper boundary (2.72%) if the selling continues.
Will The Range Break On The Tariff News:
So far this morning the selling has been moderate and I would think it’s unlikely that this alone would break the upper end of the range we’ve seen since January.
FHA Mortgage Rates
Today we have Wholesale Inventories and Wholesale Sales. On Tuesday we have Building Permits, CaseShiller, Housing Starts and Consumer Confidence. Wednesday brings the weekly Mortgage Market Index data, Durable Goods (for January). Thursday is the GDP Prelim Q4 report and Chicago PMI report. We finish off the week with Core PCE, Personal Incomes, Retail Sales (January), and ISM Manufacturing PMI (February).
March 2019 Mortgage Rates:
As we finish off the month of February we’re looking ahead to March. It’s anticipated that mortgage rates will remain within the range heading into March however nothing is for certain when it comes to mortgage rate movement. March 2019 mortgage rates will be closely watched and will most likely take direction from the economic reports that come out, trade negotiations and the Fed. Will the range be broken in March? Impossible to say however it can’t go on forever and it would not surprise me to see a move out of the range before we hit the end of March/early April. Next week is the BLS Employment report with expectations of 175,000 jobs created in February. If we have another blockbuster report near 300k jobs created that could be problematic for bonds and mortgage rates.
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 for both refinance and purchase transactions, 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 mortgage professional. You can contact him directly at 1-800-550-5538.