At The Open:
Mortgage rates will start the day near their recent lows as the Mortgage Backed Securities (MBS) market starts the day in positive territory. Both 30 year fixed and 15 year fixed rates remain near their recent lows. The 10y Treasury yield opened the day at the 2.71% level after hitting 2.74% yesterday. For now it appears the 2.70% – 2.75% is a short term range for the 10y yield however that could change as we’re seeing the 10y yield move down post CPI report. The CPI report measures inflation in the economy and bond traders and the Fed watch it closely.
Today we had the very important Consumer Price Index (CPI) report which came in at expectations. After the report the 10y yield moved down to 2.70% so the initial reaction to the report is positive which is good for mortgage rates. As for next week; there are no major economic reports on Monday. On Tuesday we have the Producer Prices Index for December, Core Producer Prices Index, and the NY Fed Manufacturing Index for Jan. On Wednesday we have retail sales for December, Export prices and Import prices for December. Thursday it’s the Building Permits report along with Housing Starts and Philly Fed Index for January. To finish out the week we have Industrial Production, Consumer Sentiment and the 1yr and 5yr inflation outlook.
Currently We Are Seeing:
30 year fixed mortgage rates below 4.25%, 20 year fixed mortgage rates below 4.125% and 15 year fixed rates below 3.625%. Please keep in mind that mortgage rates adjust daily; sometimes they adjust multiple times in a day when the bond market is volatile. 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. 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 fixed rate mortgage loan programs and adjustable rate mortgage loan programs.
Conforming Loan Limits:
Last November conforming loan limits were raised nationwide. This is especially good news for California. Having higher conforming loan limits allows more borrowers to access lower mortgage rates thus potentially saving them thousands of dollars in interest. The new conforming loan limit for a one unit property is now $484, 350.00, a two unit property is $620,200, a three unit property its $749,650 and a four unit property it’s $931,600.00.
30 Year Fixed Rate Vs. A 15 Year Fixed Rate:
When a homeowner or a homebuyer is deciding between a 30 year fixed rate or a 15 year fixed rate it’s important to remember your goals with the mortgage you’re taking on and what kind of lifestyle you lead. It’s great to have a low payment (30 year) however what are you doing with the money you’re saving by not having a 15 year? Paying off your house early is fantastic (15 year). However it’s no fun being stressed every month while you scrape by paying a larger payment on the home.
As everyone knows the government is still shutdown. There is lots of talk and blaming the other side but no real solutions. Thankful it’s not negatively affected mortgage rates however hundreds of thousands of government workers continue to go without a paycheck. According to some news reports the President is considering using emergency storm funds to pay for building a wall at the southern border. Also some Republican politicians are urging him to invoke “emergency” powers to pay for the wall despite the President admitting there really is no emergency.
We offer industry low mortgage rates, personal one-on-one service and we have an A+ rating with the Better Business Bureau. 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.