At The Open:
Mortgage rates will start the day improved from Friday as Mortgage Backed Securities (MBS) market starts the day in positive territory. The 10y Treasury yield opened the day at the 2.67% level after finishing Friday at 2.70%. Seeing bonds move lower in recent days is a positive sign for mortgage rates and it possibly indicates some stability is entering the market after the sharp move down. It appears two things are contributing to the strength in bonds; global economic slowdown and a week open to the stock market led by a much weaker than expected earnings report from Citigroup. Today is the start of earnings season for companies so we may see some “fireworks” if companies come out with stronger or weaker than expected earnings. That can influence the bond market if the move in stocks is strong enough.
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. One thing to keep in mind is that certain reports will not be released this week (ie Retail Sales) due to the government shutdown. As for bonds and mortgage rates; the big report for the week will be the Philly Fed Index. Also something to keep an eye on his how the stock market reacts to the start of earnings season. While not a specific economic report; the bond market might react to potential swings in stocks if earning reports is dramatically different than what investors are expecting. As mentioned above; we’re already starting off with a much weaker report from Citigroup which is pushing stocks down at the open.
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.
It’s official this is the longest government shutdown on record (24 days). Bond markets continue to ignore the shutdown as we move further into January with no end in site. Breaking with the President, several Republican Senators have said the government needs to reopen with or without the border wall. And the House Freedom Caucus has advised the President not to declare a “National Emergency” as it would set a dangerous precedent going forward.
Conventional Vs. FHA Mortgage:
Understanding the difference between a Conventional mortgage and a FHA Mortgage is important. A Conventional vs. FHA mortgage comparison is something we’ve covered previously on Koloans and we also include information on “conforming” mortgage loans.
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. 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. You can also connect with Mr. O’Connor on Twitter: @Rates01 If you are considering a refinance of your current mortgage or the purchase of a new home your timing could not be better. Mortgage rates are near their one year low.